By: Brian Bandell
A company controlled by hedge fund billionaire Kenneth Griffin took out two mortgages for a combined $114 million on land in Palm Beach that he intends to build a mansion on.
JPMorgan Chase Bank awarded the mortgages of $101.25 million and $12.75 million to Blossom Way Holdings, led by Griffin as the founder and CEO of Chicago-based Citadel. Forbes pegged his net worth at $7.5 billion.
Palm Beach recently approved his plans for a massive home there, but construction hasn’t started.
The larger loan covers 7.84 acres at 20-50 Blossom Way with beachfront access. The four lots were acquired for a combined $129.6 million in 2012.
The smaller loan, relatively speaking, was on the 10,873-square-foot home on the 1.45-acre site at 70 Blossom Way. It sold for $15.25 million in June 2015.
Both 30-year loans have the same interest rate terms. They start with a fixed rate of 2.75 percent for 10 years and then go adjustable at LIBOR plus 2.25 basis points.
Those rates are lower than is currently available on the conventional mortgage market.