Fortress Investment Group

Fortress focuses its commercial real estate lending on loans generally in the $25 million to $125 million range. Subscribe below to hear why. Fortress’s Spencer Garfield explains the rationale. Owners in this segment tend to have a personal attachment to their properties, and to be well capitalized. Some institutional owners, by contrast, may lack the capital to support a property through a downturn. Fortress believes properties in this range generally require less capital and less time to stabilize. Fortress writes commercial real estate loans that are senior in the capital structure and secured against the property, with a focus on conservative loan-to-value ratios. For more insights, subscribe to Fortress’s newsletter designed expressly for RIAs and financial advisors.

Regional banks were about 45% of all commercial real estate lending (1). Today they are sidelined. Subscribe below for the Fortress view. Fortress’s Spencer Garfield breaks down what’s changed. Rising rates drove a quick decline in CRE valuations, and other lenders working through legacy issues stepped back too. That left a void. Fortress is writing loans similar to those the banks were writing, at what we believe is a more attractive entry point, with over $4 trillion of CRE debt coming due. Fortress’s perspective is informed by more than 30 years of CRE investing. For more insights, subscribe to Fortress’s newsletter designed expressly for RIAs and financial advisors. (1) GAO-24-107282, published by US Government Accountability Office, Sept 24, 2024.

Fortress Private Wealth Solutions aims to be a resource to financial advisors and RIAs. Subscribe below to find out more. The Fortress team works with advisors through the entirety of an investment, not just at product development. That can mean market insights; portfolio construction tools to help you build an asset allocation that includes alternatives; product education; and direct access to our investment teams, whose perspective is honed through more than 20 years of experience. To learn more about Fortress, subscribe to our newsletter designed expressly for RIAs and financial advisors.

Fortress manages capital with a credit-first approach. How does that approach show up in decision making? Subscribe below for more insights. The credit-first mindset shows up in how we source, negotiate and manage assets. The majority of our investments are directly sourced by us, which enables us to negotiate our own bilateral agreements and structure deals with appropriate covenants. That in turn helps us preserve strict underwriting guidelines. And our asset management team of more than 160 professionals has the experience to get ahead of potential risks. For more insights, subscribe to Fortress’s newsletter designed expressly for RIAs and financial advisors.

Fortress defines the upper middle market in commercial real estate lending as loans generally in the $25 million to $125 million range. Here's why we focus there. Owners in this segment tend to have a personal attachment to their properties. That differs from some institutional owners, who may not have the capital to support a property through a downturn, or may simply walk away. Upper middle market borrowers also tend to be well capitalized, and we believe properties in this range generally require less capital and less time to stabilize. As with our broader CRE lending, these loans are senior secured, with a focus on conservative loan-to-value ratios. Watch to understand why deal size matters in our approach. Then fill out the form below to subscribe to the Fortress Market Insights newsletter.

Regional banks have historically represented about 45% of all commercial real estate lending. Today, they are almost completely on the sidelines. The rapid rise in interest rates drove a quick decline in commercial real estate valuations. Other CRE lenders working through legacy issues from before the rate increase have also stepped back. The result is a void in the market. Fortress is writing loans similar to those the banks were writing, at what we believe is a more attractive entry point. With over $4 trillion of CRE debt coming due and asset values broadly down from recent peaks, we believe there is a four-to-five-year window of potential opportunity. Watch to hear a perspective informed by more than 32 years of commercial real estate investing. Then fill out the form below for access to the Fortress Market Insights newsletter.