The Fortress Investment Group Journey
Every journey in business has both its ups and downs and the Fortress Investment Group’s is no exemption. The publicly owned company firm boasts over $70 billion with real estate being among the assets it manages. It has more than 1600 investors and its offices in Hong Kong, Singapore, Italy, Philadelphia, and New York City. After a few months of going public in 2007, Fortress Investment Group suffered a huge loss during the 2008 economic decline, trading for as little as $0.77 per share.
In 2015 Fortress Investment Group sealed its leading hedge fund after recording heavy losses caused by Brazil’s unstable market. It, however, opened a real estate fund valued at $1 billion. In the same year, Fortress sold its stake for Stuyvesant Town apartment complex at $5.3 billion. Fortress’s subsidiary company acquired in 2010 with the aim of venturing more in the real estate industry CWCapital owned the complex. Today Fortress owns Alabama’s Inverness retail center, bought in 2014. It has also helped in funding other buildings in New York City by giving credit including Bruce Eichner’s Flatiron Condo.
Fortress Investment Group has recently bought a building on Palm Beach’s Worth Avenue after it was in the market for two years. The Tiffany & Co building was sold for $20 million half the amount that the agency was to sell it at. Tiffany had earlier leased the building since 1991 and invested a lot on the building’s upgrade. Owned by the Madden Family Associates for decades, they decided to sell it following market conditions and family planning issues. SoftBank Group Completes Acquisition of Fortress Investment Group
The Fortress Management Group is at the moment raising two real estate funds. By the end of this year, it aims to have closed a $1.5 real estate fund and is raising a different one for the real estate credit purchase and buying additional assets too. The second fund will also finance aeroplane leases following Fortress Management Groups’ private credit activity expansion plan. Last year SoftBank bought Fortress Investment Group at $3.3 billion with the aim of expanding their firm to having an arm dealing with asset investment.