Fortress falls out of contract for Fred Sands’ building in Brentwood: sources

Agreed price was $58M, or about $560 per square foot

Jul.July 19, 2018 03:00 PM
Fortress executives Fred Sands and Randal Nardone with the property

Fortress Investment Group has fallen out of its roughly $58 million contract to purchase a Brentwood high-rise developed by the late real estate impresario Fred Sands, The Real Deal has learned.

Sources said the deal fell through during renegotiations, when New York City-based Fortress tried to score a better deal for the 103,000-square-foot property at 11611 San Vicente Boulevard.

The property is ground-leased through 2091 by a family trust assigned to Eulalie Ahern, deed records show. Such ground leases are often a sore spot for buyers and likely crushed the deal, sources said.

Vintage Real Estate Group, a private investment firm based in the 10th floor of the building, developed the Class A office building in 1977. The firm was founded and chaired by Sands, a real estate mogul who got his start in residential real estate.

Rents at the property are upwards of $4.10-per-square-foot, marketing materials show. Tenants include a dermatology center named Skinpeccable and Brentview Medical Urgent Care. One West Bank and Velocity Training Studio lease ground-floor retail space.

Marc Renard at Cushman & Wakefield had the listing.

Fortress, Vintage Real Estate and Renard did not return requests for comment. The family trust also could not be reached.

SoftBank Group acquired Fortress, a global investment manager, for $3.3 billion in December.

The firm has been an active investor in L.A. Last year, a joint venture between Fortress and Ocean West Capital Partners acquired a Burbank office building at Alameda Avenue for $40.3 million.

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