Fortress Net Lease REIT Secures $450 Million Total Credit Facilities Amendment
Fortress Net Lease REIT, a recently launched, perpetual, nontraded real estate investment trust sponsored by Fortress Investment Group, announced an amendment to its credit agreement, increasing the aggregate commitments from $120 million to $350 million, which includes a $25 million provision for standby letters of credit. The REIT also announced a substantial increase in the aggregative outstanding principal from $5 million to $100 million.
All commitments and amounts outstanding will be due and payable in full on Oct. 17, 2025. The REIT may also now request up to three one-year extensions on the maturity date.
Bank of America serves as the administrative agent for the credit facilities, with Capital One, National Association, KeyBank National Association, Wells Fargo Bank, and Goldman Sachs Bank USA participating as new revolving credit lenders and new term lenders.
The amended credit facilities are secured by a pledge of equity interests in certain subsidiaries of Fortress Net Lease REIT, the rights to receive income and profits from these subsidiaries and the proceeds from these assets. At the option of the REIT, the loan’s interest rate will either be calculated on a secured overnight financing rate or a base rate.
Fortress Net Lease REIT is a perpetual, nontraded real estate investment trust focused primarily on acquiring, owning, financing, and leasing a diversified portfolio of single-tenant commercial real estate properties subject to medium- to long-term net leases with creditworthy and/or investment-grade tenants or guarantors across the United States and other locations as the REIT sees fit. The fund has stated that it will seek to invest in any and all commercial property types that it deems appropriate, including retail, office, industrial, and any other specialized-use assets.
The REIT’s stated investment objectives are to deliver superior risk-adjusted returns from a diversified real estate portfolio and to generate a known and predictable stream of cash flow by investing primarily in single-tenant net leased assets. The REIT said that it believes it may accomplish these objectives by utilizing Fortress’ extensive sourcing platform and capitalizing on Fortress’ strong financial underwriting experience.
As previously reported by The DI Wire, the REIT recently experienced a surge in its NAV, increasing by more than 7% last month.
Fortress Investment Group LLC is a global investment management firm founded in 1998 and offers a range of alternative investment strategies. Fortress is headquartered in New York with affiliated offices worldwide. Fortress has $48 billion in managed assets as of June 30, 2024.