Fortress, Goldman Seek to Tap the Wealthy for New Debt REITs (1)

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.

Goldman Sachs Group Inc. and Principal Financial Group Inc.each filed in July to make commercial real estate loans ...