Fortress Investment Group recently acquired a significant and iconic building in Palm Beach on Worth Avenue. A Madden Family Associates partnership ended up selling the Tiffany & Co. building on 259 Worth Avenue for the price of $20 million. The 16,374 square feet location fetched $1,221 per square food. The building has been on the market for 2 years, being put up for sale in late 2016, the listing agent expecting it to sell for $40 million, double the amount that it ended up selling for.
Worth Avenue is considered among the most expensive retail streets in the United States. The location was built back in 1950, and it is referred to as the Tiffany & Co. building due to the fact that the company has been leasing space on the second floor since 1991, for a total of 27 years. The luxury brand is the main tenant and is leasing 11,081 square feet, having invested millions in upgrades, which includes marble floors, the clock above the entrance, and steel doors. The building ended up selling because of family planning reasons and market conditions.
Fortress Investment Group pointed out that the building will maintain its current tenants, but plans are to create an upscale office space on the second floor at some point in the future. Greg Matus of Franklin Street, a commercial brokerage firm based in Tampa, handled both sides of the sales, stating that it was a rare opportunity for Fortress Investment Group to purchase a premier asset on one of the most famous retails streets on the planet. To know more about the company click here.
Fortress Investment Group was founded in 1998 by Rob Kauffman, Randal Nardone, and Wes Edens. The alternative asset firm based in New York became famous, in part for being the first of its kind to go public, back in 2007. A decade after becoming publicly traded, the firm was acquired by SoftBank Group, a Japanese holding conglomerate, for the price of $3.3 billion, which resulted in Fortress becoming once again private. The purchase did not affect Fortress operations however, as due to regulations, SoftBank opted to let the firm operate independently.