Discover why Fortress targets upper-middle-market CRE loans ($25M–$125M), and why we believe that focus creates differentiation.
Not all real estate credit opportunities are created equal. In this video, Fortress's Spencer Garfield explains why we believe focusing on upper-middle-market CRE loans can potentially 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 potentially deliver repeat business.
- Efficient execution with rigorous underwriting and tailored deal structures.
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.
