The New York-based Fortress Investment Group made headlines recently after it was reported that they acquired an iconic building in Palm Beach for the price of $20 million. The firm purchased an important building on Worth Avenue which has been the home of Tiffany & Co. for a long time. The plan expressed by Fortress Investment Group is to retain the building’s current tenants, but they also want to add an upscale office space on the second floor of the building at one point.
The news of the $20 million deal generated a lot of buzz in Palm Beach, as locals wondered what is going to happen with the property. The building is located on 259 Worth Avenue, at the corner of Hibiscus and Worth, directly across from the Chanel store. The building was established in 1950, and it includes 16,374 square feet of space across two stories. The deal turned out to be $1,221 per square foot, for a total of $20 million. The property ended up selling for less than anticipated originally. The building was put up for sale back in late 2016 by Franklin Street, which is a commercial brokerage firm based in Tampa. Reports were that it could sell for upwards of $40 million, meaning $2,442 per square foot.
The building in question purchased by Fortress Investment Group was owned for many decades by Madden Family Associates Ltd., which is a company that manages a local family’s wealth. They transferred ownership of the building in 2011 for reasons unknown. The building is an iconic location placed on one of the most famous retail shopping streets on the planet, which means it will continue to hold significant value. Tiffany & Co. has been leasing space on the second floor ever since 1991.
Fortress Investment Group is an alternative investment fund launched in 1998 by Randal Nardone, Rob Kauffman and Wes Edens. The firm became the first of its kind to become publicly traded, and the first of its kind to return to being private after the company was acquired by SoftBank Group at the end of 2017 for the price of $3.3 billion.
Learn More: www.fortress.com/about