Nuveen Real Estate Launches U.S. Cities Multifamily Fund with $550 Million in its First Close

James Martha

NEW YORK–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, 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 living needs.”

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.

Nikita Rao

“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 accuracy.”

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.