Fortress Investment Group And Maefield Development Are Opening Two New Hotels
Fortress Investment Group worked with other entities to buy the Palace Theater in Times Square. They later partnered with Maefield Development to buy the 20 Times Square property. The property was valued at $1.53 billion. Steve Witkoff led a group of investors to buy it for $430 million in 2012. They planned to build a hotel and broke ground in 2015. The EDITION is 39 stories tall and has over 450 rooms. Maefield Development and Fortress Investment Group wanted $1.3 billion for further construction.
Fortress Investment Group helps clients with capital investment, credit, private equity, and real estate strategies. SoftBank Group purchased the company for $3.3 billion in 2017. Fortress was founded by Rob Kauffman, Randal Nardone, and Wesley Edens in 1998. In 2007, it went public with the help of Goldman Sachs and Lehman Brothers. It is the first publicly traded US private equity firm. It received several awards over the years.
The new hotel has 5,000 square feet of space for performances and four available levels for public use or events. It has a fitness club, beer garden, meeting studio, and a restaurant. The venue’s dining area has terrace seating overlooking Times Square. The hotel is planning to lease 76,000 square feet as retail space. The NFL reserved 25,000 square feet of pace for its store.
The investors are calling the hotel, retail, and theater project TSX Broadway. They expect the competed project to have a value of $4.2 billion by 2023. The real estate appraiser, Phillip Ginsberg, said it could be sold for what it is worth. Times Square Edition is predicted to be the most popular hotel for luxury travelers out of the two. The Palace Theater will have 700 rooms, an event space, multiple meeting spaces, and retail space. The theater will be restored, improved, and preserved. Maefield Development and Fortress Investment Group are excited that the project will provide opportunities for the residents, retailers, and tourists.
Fortress Investment Group is an investment management firm that manages alternative assets in credit funds, liquid hedge funds, and private equity. Its headquarters is in New York City.