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Fortress launches 1031 exchange platform for multifamily and student housing

The new Fortress Real Estate Exchange is built around Delaware statutory trusts and comes as the firm’s assets under management rose 8% to $54 billion in under a year.

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Fortress Investment Group is expanding beyond its distressed real estate roots with the launch of a 1031 exchange platform that targets multifamily properties and senior and student housing, according to Bisnow.

Fortress Real Estate Exchange is structured around Delaware statutory trusts, which Hammerman described as still involving complicated capital structures even though the platform is not positioned as distressed investing. He said the goal is to package cash-flowing assets into those structures and manage them well, aiming to offer a tax efficient wealth transfer option for the baby boomer generation.

Bisnow reports that Fortress has boosted assets under management by 8% to $54 billion in less than a year, as it looks to use its investment and structuring skills in new offerings.

The firm’s growth effort follows steps to reinforce independence, including Mubadala Investment Co’s acquisition of SoftBank’s majority stake in 2024, and Fortress raised approximately $11 billion of investable capital that year, including more than $1 billion through Fortress Private Wealth Solutions launched in December 2022.

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