Fortress Investment Group, the investment firm based in New York City, made headlines recently after their latest business deal was it announced. The firm bought an iconic building in southern Florida, in Palm Beach for the price of $20 million. The acquisition is for the Worth Avenue building that has been the home of Tiffany & Co. for many years. The current plan expressed by Fortress Investment Group is to keep the building’s current tenants, but the addition of a class A office space on the second floor is in the works.
The building bought by Fortress Investment Group was built back in 1950, and has a total of 16,374 square feet of space across 2 stories. Given the price that it was sold for, the per-square-foot price was $1,221. Despite the large amount of money paid by Fortress Investment Group, the property was expected to sell for a lot more when initially put on the market in late 2016 by Franklin Street, a Tampa-based commercial brokerage firm. Media outlets and local newspaper estimated that the building would sell for upwards of $40 million, meaning $2,442 per-square-foot, which is double the amount that it actually sold for.
Tiffany & Co. has been leasing space in the acquired building ever since the year 1991, and they operate out of the second floor. The company is expected to continue operating from that space. Fortress Investment Group as well as other parties that are involved in the acquisition hope to create a 5-star office space on the second floor, which is a project they expect would generate solid returns for their investors. Many have wondered if the purchase of the building is in any way related to the firm’s involvement with the All Aboard Florida passenger train line that is getting developed by Brightline, a company that Fortress acquired in the past. To know more about the company click here.
Founded by Randal Nardone, Wes Edens, and Rob Kauffman, the New York-based firm was bought by SoftBank Group, a Japanese conglomerate, at the end of 2017, which resulted in the company switching back to being private, after a decade of being publicly traded.
Their LinkedIn Profile: https://www.linkedin.com/company/fortress-investment-group