Fortress finally scores Brentwood Gateway tower for $58M

Same deal had fallen through last July
By Gregory Cornfield | May 20, 2019 01:00PM

Wesley Edens, Fortress Chairman and Co-Founder and 11611 San Vicente Boulevard

Wesley Edens, Fortress Chairman and Co-Founder and 11611 San Vicente Boulevard

Less than a year after the deal originally fell through, an affiliate of Fortress Investment Group has purchased the massive Brentwood Gateway office tower for $58 million.

Brentwood Gateway LLC, an affiliate of private investment firm Vintage Capital Group, sold a ground lease to the 10-story, 104,700-square-foot building at 11611 San Vicente Boulevard in Brentwood. The property is ground-leased through 2091 by a family trust assigned to Eulalie Ahern.

The tower was built by Vintage Real Estate founder Fred Sands on a 0.9-acre site in 1977. The building is nearly 100 percent occupied by tenants including Buter, Buzard, Fishbien & Royce; Allison & Partners LLC; and Oaktree Capital Management. One West Bank and Velocity Training Studio lease ground-floor retail space. The high-rise was also the long-time headquarters of Vintage Capital Group.

The Real Deal reported last July that New York City-based Fortress fell out of the contract to purchase the building for the same price when the firm tried to negotiate for a better rate.

Newmark Knight Frank represented the seller, while the buyer was self-represented. Crosbie Gliner Schiffman Southard & Swanson LLP represented the seller in negotiations and announced the deal.

SoftBank Group acquired Fortress for $3.3 billion in 2017, and the firm has remained active in Los Angeles. Last month, Fortress sold a Long Beach commercial property for $29 million.