NEW YORK–(BUSINESS WIRE)–Nuveen Real Estate, one of the largest global real estate investment
managers with $125 billion of assets under management, announced the
launch of its U.S. Cities Multifamily Fund (the “Fund”), an open-end
perpetual life real estate investment vehicle that will acquire and
manage institutional quality multifamily rental properties in select
cities across the United States. The first close is anchored by a $450
million capital commitment and seed portfolio from a third party
investor, alongside a $100 million co-investment from Nuveen Real
Estate’s parent company, TIAA.
“As investors look to commercial real estate for income and
diversification, we are well-positioned to build an attractive portfolio
of apartment assets that reflect the dynamic and stable growth
attributes of this sector,” said James Martha, Head of U.S. Housing,
Nuveen Real Estate. “We have over six decades of experience investing in
the multifamily sector and have established a strong platform to match
client capital with investment opportunities that respond to modern
The Fund seeks to acquire well-located properties with high, stable
occupancy levels located in top-tier cities and select growth markets
across the U.S. The Fund’s strategy has a primary focus on high-quality
assets that appeal to the largest base of renters: Millennials and
middle-income households (“MiMis”) who are renters by necessity rather
than by choice. The Fund launched with a diverse portfolio of nine
assets comprised of Class A and B properties spanning eight core markets
and totaling more than 3,000 units.
According to its latest research, THINK
US: Investing in the MiMis, Nuveen Real Estate believes that
MiMis will continue to drive demand for apartments in the coming decade
as their contribution to the U.S. economy continues to grow.
“Millennials and middle-income households represent a stable and
sustainable long-term source of demand for apartments, and Nuveen Real
Estate believes this demand will continue to keep occupancy rates
strong, particularly in metro areas benefiting from job growth and an
expanding economy,” said Nikita Rao, Portfolio Manager of the Fund.
The Fund is part of Nuveen Real Estate’s Global
Resilient Series of open-end, core investment funds which aim to
capitalize on long-term, structural real estate themes and demographic
megatrends by investing in dynamic and resilient cities. The Series,
which provides investors the opportunity to customize their allocations
to the four main property types – Multifamily, Retail, Office and
Industrial – is grounded in global market and economic forecasts,
thematic recommendations, local market analyses and execution.
Nuveen Real Estate’s U.S. direct multifamily residential equity and
mortgage debt investments are valued at over $17 billion (as of
12/31/18). The portfolio is comprised of 245 investments across 50
markets and multiple sub-sector types, including Class A, Class B,
luxury, workforce housing and specialty demand properties, such as
student and senior housing.
Added Rao, “We believe that our specialized investment teams, decades of
experience, local market knowledge and presence on the ground give us an
advantage in terms of sourcing new opportunities in this dynamic sector.
Our platform is well-positioned to provide institutional quality deal
execution balanced with speed, flexibility, risk mitigation and
About Nuveen Real Estate
Nuveen Real Estate is one of the largest investment managers in the
world with $125 billion of assets under management. Managing a suite of
funds and mandates, across both public and private investments, and
spanning both debt and equity across diverse geographies and investment
styles, we provide access to every aspect of real estate investing.
With over 80 years of real estate investing experience and more than 500
employees* located across over 20 cities throughout the United States,
Europe and Asia Pacific, the platform offers unparalleled geographic
reach, which is married with deep sector expertise.
For further information, please visit us at www.nuveen.com
This material is not intended to be a recommendation or investment
advice, does not constitute a solicitation to buy or sell securities,
and is not provided in a fiduciary capacity. The information provided
does not take into account the specific objectives or circumstances of
any particular investor, or suggest any specific course of action.
Investment decisions should be made based on an investor’s objectives
and circumstances and in consultation with his or her advisors.
Nuveen Real Estate is a real estate investment management holding
company owned by Teachers Insurance and Annuity Association of America
(TIAA). Nuveen Real Estate securities products distributed in North
America are advised by UK regulated subsidiaries or Nuveen Alternatives
Advisors, LLC, a registered investment advisor and wholly owned
subsidiary of TIAA, and distributed by Nuveen Securities, LLC, member
Nuveen Real Estate is a name under which Nuveen Real Estate Management
Limited provides investment products and services.
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fluctuations in property values, higher expenses or lower income than
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