Residential Assets

The Fortress Residential Assets business has a successful track record of investing through multiple cycles in a diverse set of residential real estate related strategies.

  • The broad Fortress platform with extensive sourcing capabilities allows us to identify bespoke and idiosyncratic transactions as well as participate in conventional strategies with unique structures in an attempt to maximize returns

  • Ability to participate in all components of the capital structure, which allows us to shift from senior to junior equity as we see the return landscape change versus risk

  • Extensive asset management with a focus on protecting against downside risk and creating incremental value

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“The Residential Assets team at Fortress places discipline as the core tenant of our investment philosophy. Protection of our capital drives our negotiations and decides where we participate in the capital structure. That philosophy has served us well through multiple cycles.”

Michael Fallacara

Managing Director, Residential Assets

Diversity

Highly diverse set of investment strategies

Structuring Capability

Creative structuring capability builds alignment with key sourcing / origination partners

Credit Quality

We are hyper focused on credit quality and the cost of layered risk

Risk Mitigation

Large portfolio acquisitions help mitigate risk of single borrower default

Liquidity

We believe certain residential segments have the potential to provide liquidity, even during challenging economic cycles

Segments

Given the vast size and breadth of the residential real estate market, we have opportunistically invested in a variety of asset types, with different structures, including:
Acquisition of single-family rental lending platform, which led to aggregation and disposition of those assets through capital markets execution
Opportunistic financing to mortgage originators secured by mortgage servicing rights
Acquisition and aggregation of bridge loans (residential and commercial)
Equity investment in residential mortgage loan origination platform
Acquisition of distressed mortgage loan portfolios
Acquisition and aggregation of home equity investments
Acquisition of residential and commercial property tax liens
Financing of residential fix and flip iBuying platform
Financing to a provider of technology services to the mortgage industry
Opportunistic acquisition of a portfolio of residential master planned communities
Financing of a residential shared ownership platform
Financing to residential lot developers

Asset-Backed Finance Specialties

Asset-Based Credit Financing and investing in consumer receivables, commercial receivables and other contractual cash flow streams
Structured Credit Investments in asset-backed securities with debt secured by housing-related property, commercial use property, core operating business assets or consumer credit
Intellectual Property Opportunistic intellectual property-related investments in various industries where strong intrinsic value exists
Legal Assets Opportunistic investments in legal assets, litigation finance transactions and legal or regulatory process-driven situations
European Distressed Loans Investments in pools of nonperforming loans with a focus on loans secured by real estate or backed by personal or corporate guarantees, as well as other opportunities linked to NPL situations
Residential Assets Investments in a diverse set of residential real estate-related strategies across the capital structure
Transportation & Infrastructure Investments in essential assets and businesses throughout the transportation ecosystem, including the aviation, shipping, rail, trucking, intermodal and logistics sectors

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