Fortress Net Lease Secures $347.5 Million Subsidiary Loan

The agreement includes optional extensions through 2030 and is backed by a carveout guaranty from the REIT's operating partnership.

September 26, 2025

Fortress taps new capital flexibility through subsidiary deal

Fortress Net Lease REIT has added a new layer of financial flexibility. On September 19, 2025, two of its wholly owned subsidiaries—FNLR Logistics LLC and FNLR Grocery LLC—entered into a loan agreement with Bank of America, N.A., opening up to $347.5 million in potential borrowing capacity.

The agreement is structured as an uncommitted facility. That means Fortress can draw funds as needed, within the limit, without locking into a rigid funding schedule. The term runs through September 2028, with two optional one-year extensions that could carry it into 2030. Prepayments are allowed at any time, with no premium or penalty attached.

The loan is secured by most of the subsidiaries’ assets, subject to specific exclusions. It carries interest at Monthly SOFR plus 1.70%, subject to a maximum interest rate under applicable law. Alongside standard debt and distribution covenants, the loan agreement includes provisions that allow the lender to accelerate repayment in the event of default—including bankruptcy or insolvency.

Guaranty structure adds financial safeguards

Fortress also reinforced the deal through a carveout guaranty from its operating partnership, FNLR OP LP. This guaranty comes into play if specific non-recourse carveout events occur and includes minimum net worth and liquidity requirements. It also covers financial consequences tied to misconduct or other "bad boy" acts.

Taken together, the loan and guaranty give Fortress access to capital while keeping terms flexible. At the same time, the structure delivers clear safeguards for the lender—positioning the company to pursue its next set of opportunities with a solid financial framework in place.