Fortress Equities just announced their new Fortress Equities Real Estate Value Fund, LLC. The Fund was formed for the purpose of investing in real estate opportunities that will become available as a result of the economic downturn related to the COVID-19 pandemic in 2020, and is managed by Fortress Equities, LLC, a Las Vegas, Nevada based private equity real estate company.
The active day to day managers of the Fund are the principles of Fortress Equities, Dean Jalili and Frank Jalili. Both managers are highly experienced real estate professionals with over 34 years of combined experience. The Fund will have an Investment Advisory Board consisting of three impartial advisors with extensive investment, development and real estate knowledge. Initially the Investment Advisory Board shall be comprised of Mr. Robert Kling, an MIT graduate and real estate developer, Mr. Donald Safranek, a real estate feasibility analyst with a degree in law from the University of London and a Master’s in Economics from the London School of Economics, and Ms. Shari Afshari, an experienced real estate investor, licensed Civil Engineer and Deputy Director of Public Works for the County of Los Angeles.
We believe the Covid-19 Pandemic of 2020 and subsequent economic shock will create shifts in the real estate landscape that will lead to attractive opportunities for the Fund. From the long-term effects of an economy that may not fully recover for years to shifts in the way office users operate to permanent changes in the retail landscape, the crisis will lead to lease and mortgage defaults and in turn, new opportunities to acquire quality assets at a discount.
The Fund’s primary objective will be the acquisition of well-located distressed real estate, value-add opportunities, non-performing debt, and the development of credit backed single tenant properties. The Fund will also have the flexibility to consider other real estate related investments and provide hard money to borrowers who meet specified criteria. The Fund will pursue opportunities in markets in the western United States where the Company has holdings or prior experience including California, Nevada, Arizona, Oregon, and Washington.
Fortress Equities, LLC has been active throughout extreme market fluctuations, including the financial crisis of 2008. During that economic downturn, the Company acquired assets through many avenues including the trustee auction, non-performing debt from banks and dealers, and traditional auctions and transactions of distressed purchases. From humble beginnings in one of the worst economic climates in recent history to today, Fortress Equities and its affiliated entities now own and/or manage over 500,000 square feet of real estate. This vast experience has given the Company the skills and ability to reduce negative effects on investors while finding unique opportunities to create profitability, mitigate risk and generate wealth for individual investors. Their focus is capital preservation coupled with superior returns through the acquisition, management, and repositioning of value-add real estate and related debt vehicles coupled with ground up development for credit tenants. We pursue undervalued opportunities in fundamentally sound western US locations where we can increase value, generate consistent cash flow and provide risk-adjusted returns. As of May 2020, our portfolio of holdings is leveraged less than 25% loan to value across the board ensuring our ability to manage risk on our holdings in turbulent times.
The Fund is managed and advised by seasoned professionals who are dedicated to the success of the Fund. For more information, please visit the Fund website.