Fortress Investment Group was the first major private equity firm to become a publicly traded company. The firm, which currently has over $70 billion under management, has a new real estate project in New York’s Times Square. Fortress and its partners recently purchased the Palace Theater as well as the Marriott EDITION, located at 20 Times Square. In order to acquire full ownership, Fortress Investment Group and Maefield Development purchased bought the shares of former partners Howard Lorber, Ian Schrager, Steve Witkoff, and Winthrop Realty Trust at a total property valuation of $1.53 billion.
The new project was dubbed TSX Broadway and will eventually include two hotels, the EDITION as well as the Doubletree Suites, the location of the Palace Theater. The Doubletree is currently being renovated, but insiders believe that the smaller luxury EDITION will be the more elite of the two properties. The project also includes a full renovation of the Palace Theater, which will involve raising the structure almost 30 feet. The larger Doubletree hotel is expected to have around 700 rooms as well as ample meeting and event space. Fortress Investment Group leadership believes that upon completion, the property will see a significant appreciation in value. To know more about the company click here.
Although it is the smaller of the two hotels, the EDITION boasts a 5,000 sq. feet performance venue, a meeting space, as well as industry-standard fitness facilities. In addition, the upscale venue also has a restaurant and beer garden overlooking Times Square. The EDITION also has a large retail area, with the NFL planning a new 25,000 sq. foot retail space at the property.
Fortress was founded in 1998 by Randal Nardone, Wes Edens, and Rob Kauffman. Lehman Brothers and Goldman Sachs handled the investment firm’s historic IPO in 2007. Fortress Investment Group was honored as the Hedge Fund Manager of the Year for 2014, one of many awards the company has received in its short history.