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Nuveen Global Cities REIT Acquires Three Medical Office and Life Science Properties

Nuveen Global Cities REIT, Inc. (GCREIT) has completed the acquisition of three medical office and life science properties for an aggregate purchase price of approximately $35 million. GCREIT is a public, non-listed NAV real estate investment trust advised by an affiliate of Nuveen Real Estate, one of the largest real estate managers globally with approximately $133 billion of assets under management as of December 31, 2020.

GCREIT’s acquisitions offer increased exposure to a sector that is benefiting from short- and long-term demand growth. GCREIT believes that healthcare-centric real estate will continue to grow in importance during the coming decades, particularly in light of COVID-19, and is likely to spark more research into finding vaccines for future pandemics, which will be a key driver of life science demand.

“While economic recovery continues in 2021, the pace will vary across sectors and industries,” said Richard Kimble, Portfolio Manager of GCREIT. “We are seeing certain real estate sectors such as industrial, technology and medical-related properties benefiting from macroeconomic trends such as e-commerce growth and increased reliance on technology and healthcare.”

The medical sector in the United States has experienced long-term tailwinds due to the aging baby boomer generation, comprised of approximately 73 million people who are increasingly seeking innovative healthcare solutions. Given the high cost of healthcare relative to other developed nations, more cost-effective medical care outside of the traditional hospital setting has become more popular.

The acquisitions are located in target United States cities selected for resiliency and bring GCREIT’s allocation to healthcare-centric real estate to approximately 14% of its $657.54 million portfolio, as of January 31, 2021.
  • 2945 Wilderness Place is a 31,000 square foot life science building located in Boulder, Colorado. The property is currently 100% leased and serves as the headquarters for a biotech company. GCREIT believes that the Denver/Boulder metropolitan area has all of the key elements of a strong life science market: strong life science employment growth; a concentration of scientists and high tech workers; the presence of the National Institutes of Health and venture funding; educational institutions providing life science graduates; and medical research and health services institutions.
  • Linden Oaks is a 43,000 square foot medical office property located in the Chicago, Illinois suburb of Naperville, which boasts median incomes that well out-pace the national average, as well as high insurance coverage with 95% of the population covered by health insurance. The property is currently 100% leased with an existing long-term lease, providing for the potential to generate a steady cash-on-cash return for GCREIT.
  • Locust Grove is a newly constructed 40,000 square foot outpatient medical office located outside of Atlanta, Georgia, which is currently 100% leased to an investment-grade health care tenant. The building is a Class-A purpose built medical office that will provide limited capital expenditure over the expected hold period while benefiting from the high growth market fundamentals of Atlanta.
GCREIT is sponsored by Nuveen, LLC, a TIAA company and externally advised by its affiliate, Nuveen Real Estate Global Cities Advisors, LLC, an investment advisory affiliate of Nuveen Real Estate.

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Forward-Looking Statements
Certain information contained in this press release constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology or the negatives thereof. These may include GCREIT’s financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, and statements regarding future performance. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. GCREIT believes these factors include, but are not limited to, those described under the section entitled “Risk Factors” in its annual report for the most recent fiscal year, and any updated factors included in its periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. Except as otherwise required by federal securities laws, GCREIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
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