Fortress, Goldman Seek to Tap the Wealthy for New Debt REITs
- REITs aim to meet rising demand for commercial-property debt
- Firms look to individual investors as institutions pull back
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Fortress Investment Group is preparing to raise money from individual investors for a vehicle that finances commercial real estate debt, as money managers seek to meet an expected spike in demand for such loans.
Fortress — which has traditionally catered to large institutions — filed with regulators this month to set up a nontraded, perpetual-life real estate investment trust. The Fortress Credit Realty Income Trust will finance loans for a range of real estate ventures, including multifamily, hospitality and industrial properties.