Gucci-Leased Building on Palm Beach’s Worth Avenue Sells for $43M

Yet another building on Palm Beach’s upscale Worth Avenue in South Florida has been traded.

Acadia Realty Trust paid $43 million for a 9,932-square-foot property at 225 Worth Avenue, which is leased to Gucci, J. McLaughlin and G/Force, property records show. 

The 0.3-acre complex more than doubled in value from its previous sale just five years ago, when JSB Capital Group paid $18 million. The recent sale breaks down to $4,329 per square foot.

Since the pandemic, Palm Beach, an ultra-wealthy island town, has continued to attract a steady influx of high-net-worth individuals. Major financial institutions, including Wells Fargo, Goldman Sachs and J.P. Morgan Chase, have also established new offices in nearby West Palm Beach.

Acadia’s acquisition comes just a few days after the billionaire Reuben brothers purchased the Esplanade retail complex up the road for $200 million. The 128,779-square-foot property occupies nearly a full block at 150 Worth Avenue with tenants that include luxury fashion labels Emilio Pucci and Akris, watchmaker Hublot, and Starbucks.

Across the street, billionaire Ken Griffin sold the 48,578-square-foot building that housed a Neiman Marcus department store for $80.5 million late last year. 

Acadia Realty Trust, which specializes in retail and is based in Rye, N.Y., owns one other property in South Florida: the 204,002-square-foot Pinewood Square complex in Lake Worth.

Representatives for Acadia and JSB did not immediately respond to requests for comment. 

Julia Echikson can be reached at jechikson@commercialobserver.com.