The New York-based asset management firm Fortress Investment Group recently made a multimillion-dollar purchase that could pay off big for investors. The Tiffany building at 259 Worth Avenue was built around 1950. In its earlier years, the Frances Brewster boutique operated successfully out of the business for decades. Fortress Investment Group plans on turning the building into something that will generate solid profits for investors for years to come.
Tiffany & Company
Tiffany & Co. has been leasing space in the building for almost 3 decades. Worth Avenue, the street on which the Tiffany Building is situated has been the place for the rich and famous to shop for nearly a century. Now, after the election of Donald Trump, the complex is expected to skyrocket in popularity and value as it is located about a mile and a half from Trumps Mar-a-Lago resort. The building’s original owners were the Madden Family, a local family that was at one time one of the wealthiest in the community. Officially, the Tiffany building was owned by Madden Family Associated Ltd. The property was estimated by The Palm Beach Post expected the property to fetch a hefty sum when it was listed on the market back in 2016. Before its purchase, it was estimated to fetch 40 million dollars, a price that breaks down to about 2,442 dollars per square foot. The property was overvalued by about 50%, as Fortress Investment Group procured the real estate for only 20 million dollars, about 1,221 dollars per square foot. Even at its new value, the cost per square foot is still astronomical in retrospect.
Fortress Investment Groups Plans For The Tiffany Building
Fortress Investment Group has been purchasing property around planned train stations in these communities. The department of transportation in Florida has announced plans to build a high speed (168 mph) rail system connecting Tampa and Orlando. Fortress plans on turning the Tiffany Building into a professional building and will more than likely be highly sought after leasing space for other companies looking to do business in the area.