Fortress is doubling down on CRE debt

SoftBank-owned company is raising two CRE-focused funds

Aug.August 29, 2018 02:30 PM

Fortress Investment Group’s Wes Edens (Credit: Getty Images)

Fortress Investment Group is in the midst of raising two real estate funds.

The SoftBank Capital-owned investment firm is set to close a $1.5 real estate credit fund by the end of the year, and is raising another that will buy real estate debt along with other assets, Bloomberg reported.

The latter fund will also invest in loans backed for airplane leases. It’s part of Fortress’ broader strategy to expand its private credit activity.

SoftBank bought Fortress in a $3.3 billion all-cash deal last year as part of a move to create an alternative asset investment arm, according to Vision Fund head Rajeev Misra. He also previously said that he plans to market Fortress-branded funds to some of the Vision Fund’s backers in the Middle East.

In New York, Fortress has provided debt on Bruce Eichner’s Flatiron condo 45 East 22nd Street, among other projects. It’s also partnered with Maefield Development and L&L Holding Company on TSX Broadway, a Times Square hotel-and-retail development that’s expected to be worth roughly $4.2 billion by 2023. [Bloomberg] — Konrad Putzier

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