Fortress Investment Group is bolstering its presence on Times Square in New York City.
According to a Sept. 11 article published in Livenewspaper, FIG purchased the historic Palace Theater with several partners back in February. Located just across the street from the currently under-construction Marriott Edition, the hotel that houses the Palace was sold before those renovations began.
Fortress Investment Group teamed up with Maefield Development to purchase 20 Times Square, buying out their partners including New Valley, Ian Schrager, Steve Witkoff and Winthrop Realty Trust for $1.53 billion, according to the article. The deal gave FIG full ownership of the property.
FIG is an investment management firm that oversees alternative assets in private equity, liquid hedge funds and credit funds. Highly diversified, it acts on behalf of more than 1,500 institutional and private clients.
The building was originally purchased by investors for $430 million in 2012. Following the purchase, it was announced that a luxury hotel would be immediately built, but construction did not begin until 2015 due to a number of problems that slowed the effort.
The Edition itself is 39 stories tall and has 450 rooms, plus additional retail space. Maefield was seeking additional capital for construction when the most recent deal closed.
The partners are planning to seek $1.3 billion to cover construction costs on their numerous Times Square holdings. They hope to rehabilitate the Palace Theater, expand the hotel and build a massive outdoor sign screen.
Fortress Investment Group was purchased by Japan’s SoftBank Group in 2017 for $3.3 billion and remains headquartered in New York City. Founded in 1997, FIG is the first publicly traded private equity frim in the United States.
Fortress Investment Group currently manages more than $70 billion in assets. and was named the 2014 Hedge Fund Manager of the Year, in addition to receiving several other awards.