Fortress Investment Group Enters 1031 Exchange Market With DST Platform
Fortress Investment Group LLC, a global investment management firm, has launched Fortress Real Estate Exchange, a 1031 exchange platform designed to provide advisers and their clients with access to institutional‑quality real estate investments through Delaware statutory trusts.
The platform is designed to leverage Fortress Investment Group’s real estate capabilities, including experience from more than 20 years of real estate investments totaling over $29 billion. The platform will initially target investments in senior housing, student housing, and multifamily properties, said Eli Edwards, head of U.S. real estate equity at Fortress.
“Given the valuation resets we’ve seen over the past five years and the supportive underlying fundamentals, we believe this is a compelling entry point for new real estate asset acquisitions – with the potential to deliver durable income streams to investors,” said Edwards.
Fortress Real Estate Exchange seeks to help real estate owners address key investment planning objectives, including deferral of capital gains taxes, diversification of real estate exposure, and the desire to transition away from active property management. The platform also targets stable cash flows and potential asset appreciation.
Each offering will provide investors with flexibility in exit strategy, particularly by avoiding mandatory UPREIT structures.
Fortress said each offering will draw on its real estate platform’s sourcing capabilities, proprietary data and analytics, dedicated asset management, and investor reporting.
“We built this platform to give advisers and the investors they serve a tax-advantaged, real estate focused investment strategy, backed by the investing experience, asset management know-how, and operational excellence they expect from Fortress,” said Tim Sloan, global head of real estate at Fortress.
“The baby boomer generation has approximately $90 trillion of net worth, and an estimated $2 to $4 trillion concentrated in investment properties and second homes,” said David Hammerman, chief operating officer of real estate equity at Fortress. “As these individuals seek more tax-efficient approaches to real estate investing and wealth transfer, we believe that Delaware statutory trust structures incentivized pursuant to Code Section 1031 offer an effective solution to transition from active ownership of smaller-scale assets to fractional, passive ownership of institutional-quality real estate on a tax-deferred basis.”
In connection with Fortress Real Estate Exchange, Fortress has selected Orchard Securities LLC as dealer-manager for future offerings and LODAS Markets Inc. as transfer agent.
Founded in 1998, Fortress manages $54 billion in assets under management as of Sept. 30, 2025, on behalf of approximately 2,000 institutional clients and private investors worldwide across credit and real estate, private equity and permanent capital investment strategies.
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