Real Estate Debt
The Fortress Commercial Real Estate Debt business targets resilient high-quality assets in a range of transaction sizes across the US and Europe. Utilizing our extensive sourcing network and rigorous investment approach, we originate senior secured loans, we also acquire debt, buy real estate debt portfolios outright, invest in real estate securities and provide bespoke capital solutions in special situations.
We believe we are a value-add capital provider to our investors with a deliberate and hands-on approach to asset management. We serve as trusted stewards of capital and continually strive to provide downside protection for our investors.
As of March 31, 2024.
* Represents the average years of industry experience for senior members of the Real Estate Debt team.
“Our business is extensive in its depth and breadth of real estate and structured finance experience, providing asset owners with the potential for unique financing solutions and investors with compelling risk-adjusted returns.”
Tim Sloan
Vice Chairman of Fortress and
Head of Real Estate Debt
Proven Experience and Track Record
Backed by the Fortress platform of over 200 investment professionals, the Real Estate Debt Team has invested over $16 billion of Fortress fund capital in 350+ real estate transactions since 2006, across numerous market cycles.* The Real Estate Debt leadership team has an average of more than 30 years of experience, with key members having worked together at Fortress for more than 10 years
Multi-faceted Sourcing
We originate investments through our propriety sourcing network, including our strong industry and repeat client relationships, as well as Fortress-owned servicing businesses. We share information between our global teams on a weekly all-hands meeting involving all of the firm’s investment professionals, as well as on a proprietary Customer Relationship Management (CRM) system
Flexible and Creative Solutions
Our broad mandate and platform allow us to structure transactions creatively to pursue the most favorable outcomes for stakeholders. We seek the best risk-adjusted points in the capital structure to invest. We seek to act on opportunities swiftly and efficiently, and close on our convictions
Dedicated Asset Management
Our 35- member global real estate debt asset management team manages operationally complex assets across the US and Europe.* We see asset management as an essential part of our value chain
*As of March 31, 2024.
Segments
Stabilized
Stable assets that don’t require renovation or value enhancement
Value-Add
Assets that require minor renovation or enhancements to unlock value
Transitional
Existing properties in need of meaningful value enhancement
Construction
Construction or re-development of commercial real estate assets
Hybrid
Real estate corporate credit facilities, real estate NAV loans, and strategic joint ventures
Opportunistic
Special situations as a result of dislocation or distress, or solutions such as portfolio purchases
Case Studies
Hilton Midtown New York
Fortress originated an acquisition loan to a joint venture to support the purchase and minor renovation of a 478-key hotel in New York, NY. The hotel closed in 2020 for Covid-related reasons and remained closed until the joint venture acquired the property at an attractive price from a special servicer in September 2022.
At acquisition, the joint venture’s business plan was to reopen the hotel and simultaneously implement a minor renovation plan, which included the modernization of the elevators and lobby upgrades. The sponsorship group comprises high-quality, institutional investors with strong experience in the New York hospitality market.
Since closing, the joint venture successfully reopened the hotel and is implementing the renovation plan.
Regent's Crescent
In October 2018, Fortress fully funded a £70 million mezzanine loan to help finance the construction of Regent's Crescent. Situated on the southern edge of London’s Regent's Park, Regent's Crescent was a prestigious Prime Central London residential development with Grade 1 listed status.
The project encompassed 67 apartments, 9 mews houses, underground parking, and an extensive spa area featuring a gym and pool facilities.
Project Greek
In July 2020, Fortress acquired a portfolio of six commercial real estate loans secured by a variety of asset types across the US. The loans were performing but had near-term maturities and faced refinancing risk given uncertain capital markets and incomplete business plans.
Real Estate Specialties