Did Alex Rodriguez Get Grifted On A Star Island Miami Real Estate Deal?

Former shortstop Alex Rodriguez has jumped headfirst into the real estate world. He founded his initial investment management firm in 2003 during his playing days and has since invested more than $1 billion in properties in more than a dozen states, including about half a billion dollars in hotels and resorts across Miami, New York, and Seattle. He's certainly made some good deals, though he may have gotten fleeced in his most recent one.

Back in 2020, billionaire Ken Griffin acquired a nearly 1-acre waterfront lot at 14 Star Island Drive in Miami Beach. Griffin paid $24 million in 2020 and sold to Rodriguez and Jennifer Lopez in 2022 for $18.5 million. Rodriguez planned to hire an architect and build a massive mansion on the lot.

Now, Rodriguez's A-Rod Corp has just sold the property back to Griffin for $45.5 million. At first glance, this seems like a massive win for A-Rod. A $27 million profit in one year is incredible.

But let's look a little closer — those numbers aren't quite what they seem.

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When Rodriguez and Lopez bought the property in 2022, it included a land swap with the estate next door. Griffin received the lot at 13 Star Island Drive in exchange for selling 14 Star Island Drive.

Rodriguez and Lopez spent $32.5 million for 13 Star Island Drive. In total, they put up $51 million between the two properties. Griffin now owns both, and A-Rod Corp will only make $45.5 million in return. Factoring in closing costs and other fees, and it's probably even a few million less than that.

When all is said and done, Rodriguez's company will likely end up losing $5.5 million and $8.5 million.

Of course, Griffin probably overspent on these deals, too. But he now owns seven adjoining lots on the man-made island, as well as several other properties in Palm Beach. He plans to build a commercial tower in Miami for his Citadel and Citadel Securities companies and can rent out or re-sell the lots — or the ensuing buildings that go on them — to other tenants.

Rodriguez still has several investments that are doing well. Most recently, his Monument Capital Management raised over $75 million for a multifamily fund to acquire properties in the Midwest and Sun Belt of the United States.

Yet this deal is a good reminder that even though real estate might be a lucrative investment, it can go south in a hurry.

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