Fortress Investment Group Launches 1031 Exchange Platform Targeting $100-$200m, With 40% Focus On Senior Living

Fortress Investment Group has launched Fortress Real Estate Exchange, a new 1031 exchange platform that includes senior housing among its targeted investment sectors.

The platform is designed to provide both advisors and their clients with access to institutional‑quality real estate investments through Delaware Statutory Trusts, a press release states.

Eli Edwards, U.S. head of real estate equity at Fortress, told Senior Housing News that senior living investments are expected to make up around 40% of the overall platform’s assets. While it does not have any money associated with it at launch, the goal for the platform is to raise between $100 million and $200 million throughout the remainder of the year, with a ramp up to $500 million to $1 billion per year within the next three years.

“The opportunity set within the real estate sectors that Fortress Real Estate Exchange is targeting is robust, with new supply for senior housing, student housing and multifamily well below peak levels and demand remaining strong,” Edwards said in the release. “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.”

Senior living has over the past year reached record low levels of new development, only representing 1% of total inventory at the end of 2025, with only 1,900 units added in the fourth quarter.

David Hammerman, chief operating officer of real estate equity at Fortress, added that the baby boomer generation holds $90 trillion in net worth, with an estimated $2 to $4 trillion concentrated in investment properties and second homes, according to the release.

“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,” Hammerman said.

Fortress has a “sizeable” portfolio of seniors housing assets, according to Edwards, including recent acquisitions such as Tuscan Gardens of Palm Coast, two RoseWood Village Assisted Living and Memory Care communities in Charlottesville, Virginia and The Village at Gainesville in Gainesville, Florida.

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