(Bloomberg) -- 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.

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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 through the same type of REIT.

Wall Street anticipates a jump in requests for commercial real estate loans, driven by forecasts that the Federal Reserve will lower interest rates and that developers will refinance billions in property debt. Total commercial and multifamily mortgage borrowing and lending is expected to finish the year at $539 billion, a 26% increase from 2023, according to a report last month from the Mortgage Bankers Association.

The Fed was widely expected to make its first rate cut in four years on Wednesday. Still, Moody’s said in a note ahead of the Fed’s decision on rates that commercial real estate activities “hinge on the clarity of future interest rate trajectory.”

Banks have been pulling on commercial real estate lending, as they’re already saddled with a glut of troubled loans. Institutional investors, meanwhile, have been reducing their exposure to commercial real estate, spurring alternative asset managers to look to individual investors.

“People are getting creative because there’s so much demand” for commercial real estate financing, said Christian Gore, founder of real estate investment firm G-1 Capital Partners. The nontraded REITs, Gore said, “are another way for folks to access retail capital in large quantities.”

Spokespeople for Goldman Sachs, Fortress and Principal all declined to comment. The Goldman REIT aims to initially raise as much as $1 billion, according to its filing.

While many REITs list their stock on an exchange, the firms’ nontraded vehicles will let investors periodically cash in their shares at net-asset value. These types of semi-liquid vehicles are typically marketed to accredited investors, people whose net worth exceeds $1 million — not including their primary residence — or whose annual income exceeds $200,000.