There's a new REIT type on the block. Big firms are forming organizations to deliver financing to commercial property debt, as Bloomberg reported. Fortress Investment Group, Goldman Sachs, and Principal Financial Group among others are forming non-traded REITs. Goldman hopes to raise up to $1 billion, according to an SEC filing.
The institutions are marketing these new structures to high-net-worth accredited investors who want to get exposure to CRE debt. They can periodically cash in shares at net-asset value, adding a form of semi-liquidity to make the venture more attractive.
According to a Mortgage Brokers of America projection, commercial and multifamily mortgage borrowing and lending should finish 2024 at $539 billion, up 26% from 2023.
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