Smaller Deals, Bigger Edge: The Upper-Middle-Market Advantage

Not all real estate credit opportunities are created equal. In this video, Fortress's Spencer Garfield explains why focusing on upper-middle-market CRE loans can offer stronger borrower alignment, faster execution, and attractive yields.

Why focus on the upper-middle market:

• Loans in the $25M–$125M range often involve more committed, well-capitalized borrowers.
• These properties typically require less stabilization and provide stronger collateral.

Fortress’s competitive edge:

• Decades of experience originating and managing middle-market CRE credit.
• Proprietary sourcing and established borrower relationships can deliver repeat business.
• Efficient execution with rigorous underwriting and tailored deal structures.

Advisor benefits:

• Access to strategies and opportunities that balance risk and reward.
• Potential for consistent income and strong borrower alignment.
• Enhanced portfolio diversification through institutional quality real estate credit.

Spencer Garfield: Fortress defines the upper middle market as generally loans that are in the $25 to $125 million range. We like this space for a variety of reasons. Number one, the owners tend to have more of an emotional attachment to the property. It's very different than the institutional attachment, where out of a closed end fund, they may not have the capital to protect a property in a downturn or they simply walk away from it. We also find that upper middle market borrowers tend to be very well capitalized, and then also we think that the upper middle market properties generally require less capital and less time to stabilize. We have a fantastic track record of maximizing those investments to the benefit of our investors.