11 Feb 2021
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Nuveen Real Estate’s U.S. Cities Multifamily Fund acquires two multifamily assets
The U.S. Cities Multifamily Fund (‘Fund’) managed by Nuveen Real Estate, one of the largest real estate investment managers globally with $132 billion of assets under management1, has completed the acquisition of two multifamily properties. The Fund is a core, open-end strategy focused on investing in institutional quality multifamily assets targeting the middle-income household renter, diversified across select subtypes in targeted resilient U.S. cities.
The Fund has acquired Lake Vue Apartments, a class A community within the Dr. Philipps suburb of Orlando, FL and part of the South Orange County apartment submarket, as well as Glenhaven at Star Ranch, a class B community located in Hutto, TX, adjacent to the Round Rock/Georgetown submarket of Austin.
“Our team has over six decades of experience investing in the multifamily sector and believes the current environment offers one of the most dynamic opportunities for long-term investors in this space, particularly through investments targeting millennial and middle-income renters that provide investors with income and diversification,” said Nikita Rao, Portfolio Manager, U.S. Cities Multifamily Fund.
Both assets represent opportunities for growth in resilient locations. Lake Vue Apartments is located within a 10-mile radius of over 18 of the largest employers in Orlando, representing approximately 182,000 jobs. Glenhaven, adjacent to the Star Ranch Country Club, benefits from the long-term fundamentals of the Austin metro area, which continues to attract new employees and talented workers. Both properties offer contemporary amenities including fitness centers, pools and premium in-unit features.
“COVID-19 accelerated increasing migration to markets in the U.S. sunbelt,” said Rao. “These acquisitions capitalize on that trend, providing the Fund with additional geographic diversification in Austin and Orlando, which rank among the top five U.S. cities for future population growth.”
The Fund seeks to capture durable renter demand in top-tier U.S. cities, driven by millennial and middle-income households (“MiMis”), who are renters by necessity rather than by choice. Nuveen Real Estate’s research has identified this group as a stable and sustainable long-term source of multifamily demand, offering enhanced income return potential with consistent cash flow distributions.
The Fund is part of Nuveen Real Estate’s Global Resilient Series, which aims to capitalize on long-term, structural real estate themes and demographic megatrends by investing in dynamic and resilient cities. The U.S. sleeve of 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. multifamily equity and debt platform manages over $21 billion. The platform is comprised of 329 investments across 60 markets and multiple sub-sector types, including class A and B, luxury, workforce housing and specialty demand properties, such as student and senior housing.2
1 As of December 31, 2020
2 As of December 31, 2020
2 As of December 31, 2020