Tiffany & Co. Building Purchased By Fortress Investment Group At Half The Estimated Price

Fortress Investment Group is a New York City-based investment management firm that focuses on alternative assets in liquid hedge funds, credit funds, and private equity. The firm was established in 1998 by Wes Edens, Randal Nardone, and Rob Kauffman, and became well known for being the first private firm of its kind to become publicly traded. Fortress Investment Group was acquired late last year by Softbank for $3.3 billion, and became once again a private firm.

The firm made headlines recently after making a deal in southern Florida, and acquiring the iconic Worth Avenue building in Palm Beach. Worth Avenue is a famous shopping location, and the building in question has been the home of Tiffany & Co. since 1991. The brand operates out of the 2nd floor, leasing a space of 11,081 square feet. Despite the fact that the building got purchased by Fortress Investment Group, it will retain its current tenants – one change is expected however, as plans are to create a class A office space using the remaining available space on the second floor, a venture which is expected to generate solid returns for its investors. More Business News at businesswire.com

The deal naturally generated a lot of buzz in the area, but it also generated surprise due to the fact that the building got sold for $20 million. When the property was put up for sale in 2016 by Franklin Street, a commercial brokerage firm in Tampa, the local media outlets and newspaper estimated that the location could sell for up to $40 million, double the amount that it actually got sold for. Greg Matus, a senior vice president of investment sales at the Franklin Street brokerage firm, handled both sides of the sale and noted in an official statement that it was a rare opportunity for the investor to purchase a premier asset on one of the most well-known retail streets on the planet.

The media is currently speculating on weather the purchase made by Fortress Investment Group is in any way related to their involvement with the All Aboard Florida, a passenger train line that is currently being developed by Brightline, a company also owned by FIG.

Read more: https://www.wsj.com/articles/softbank-nears-deal-to-buy-fortress-investment-group-for-more-than-3-billion-1487112978

 

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