To Our Readers
This website is created by Fortress Real Developments in its capacity of development consultant (read full disclaimer). This website provides a detailed, comprehensive and exculpatory look at the contracts, documents and structure of the syndicated mortgages that funded Fortress projects. Particular focus has been placed on items such as disclosure and risks. From the time Fortress began its real estate business, projects have been partially funded through syndicate mortgages, an option that has been used in the real estate industry for decades. Senior lenders (banks, credit unions, institutional lenders etc.) have additionally participated in funding Fortress Projects in excess of $750M.
The Role of Fortress Real Developments
Fortress Real Developments Inc (FRDI) was never a borrower in any projects and funds to FRDI were only paid from disclosed fees. A separate entity (aka single purpose vehicle or SPV) was involved in each project to silo and protect every project from each other. FRDI was a development consultant on all projects and collected a disclosed fee for that service which was clearly outlined within the loan documents to the individual lenders/investors. In some projects, a Fortress related entity was a partner/Joint Venture/Shareholder (Example: East Fifty Five) and their role and fee participation for such projects was also disclosed in the loan documents.
A review of how fees, risks, contract terms and roles were disclosed over three generations of documents. READ MORE
The objective of this section is to find the disconnect between the documents and the lenders/investors who signed them. This is done by looking at the process involved in transacting the syndicate mortgage loans and the multiple parties involved. READ MORE
Review of Exits
A review of 40 project exits including principal and interest payments made, methods of valuation, document disclosure generation and more. READ MORE