background-Austin Self-Storage Portfolio | Properties

Austin Self-Storage

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Description:

GCREIT is providing floating rate whole note financing for the acquisition of two newly constructed class A+, climate controlled self-storage facilities located in Austin, TX.

The two properties are new construction, class A+ facilities built to modern standard with convenient amenities including 100% climate-controlled units, best-in-class management, and top-end security desired by the high-income surrounding communities. The facilities include 1,548 units and additional ground floor retail. The loan basis represents a deep discount to current self-storage trades and new development in the area.

The deal’s sponsor and property manager are both strong repeat business partners of Nuveen Real Estate; the sponsor will be investing new equity showing its alignment for the deal and commitment to the business plan.

The Austin market is one of the most attractive markets for self-storage demand. Of the top 50 largest metro areas, Austin ranks #1 in terms of population growth, growing by an average rate 2.6% from 2013-2023 (according to Moody’s Analytics). We believe strong sponsorship, experienced property management, and population growth provide for an opportunity to generate a strong risk-adjusted IRR on this mortgage financing.
-Richard Kimble, Portfolio Manager

 

Further information:

Global city:

Austin is a “Tomorrow’s City” and is a target market for self-storage investment due to strong rent and population growth. Austin has benefitted from a number of corporate relocations in recent years and employment growth is projected to continue to outperform. Median household income in Austin remains above the national average and the combination of healthy job growth, population growth, and high income should translate to healthy demand for storage space.

The two assets within the Austin Self-Storage Portfolio offer diversification benefits as they are located in two distinct submarkets of the city and will benefit from different economic drivers. The area surrounding the Georgetown asset is in a higher income suburb north of the city, while the area surrounding the San Marcos asset is a lower income area southwest of the city midway between Austin and San Antonio. Both areas, however, are poised to maintain 2.0% annual population growth over the next 5 years, higher than the U.S. average of 0.4%.

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Source: Stratodem Analytics

The properties pictured in the presentation represent select holdings at the time of publication and are not meant to represent the entire portfolio. The opinions expressed are reflective of the manager's views at the time of acquisition.

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This material must be preceded or accompanied by a prospectus for Nuveen Global Cities REIT. This material does not constitute an offer to sell or a solicitation of an offer to buy any security. An offering is made only by a prospectus to individuals who meet minimum suitability requirements. This sales literature must be read in conjunction with a prospectus in order to understand fully all the implications and risks of the offering of securities to which it relates. A copy of the prospectus must be made available to you in connection with this offering. Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of our securities or determined if our prospectus is truthful or complete. Neither the Attorney General of the State of New York nor the Securities Division of the Office of the Maryland Attorney General has passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.

The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients.

All information is as of 28 Feb 2023, unless otherwise disclosed.

Nuveen Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). Nuveen Securities, LLC, member FINRA and SIPC, is the dealer manager for the Nuveen Global Cities REIT, Inc. offering.

Diversification of an investor's portfolio does not assure a profit or protect against loss in a declining market.

Risk factors:
Nuveen Global Cities REIT, Inc. is a non-listed REIT, which offers limited liquidity as compared to other products, such as publicly listed REITs. Investors in Nuveen Global Cities REIT, Inc. are not receiving publicly listed shares. An investment in Nuveen Global Cities REIT, Inc. involves a high degree of risk, including the same risks associated with an investment in real estate investments, including fluctuations in property values, higher expenses or lower expected income, currency movement risks and potential environmental liabilities. Please consider all risks carefully prior to investing in any particular strategy, including the following risks for Nuveen Global Cities REIT, Inc.:
  • There is no assurance that we will achieve our investment objectives.
  • This is a “blind pool” offering and other than the investments described in the prospectus, you will not have the opportunity to evaluate our investments before we make them.
  • Since there is no public trading market for shares of our common stock, repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase plan provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases are subject to available liquidity and other significant restrictions. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid.
  • The purchase and repurchase price for shares of our common stock is generally based on our prior month’s NAV (subject to material changes as described above) and is not based on any public trading market. While there is independent periodic appraisals of our properties, the appraisal of properties is inherently subjective, and our NAV may not accurately reflect the actual price at which our assets could be liquidated on any given day.
  • We have no employees and are dependent on Nuveen Real Estate Global Cities Advisors and its affiliates to conduct our operations. Nuveen Real Estate Global Cities Advisors will face conflicts of interest as a result of, among other things, the allocation of investment opportunities among us and Other Nuveen Real Estate Accounts, the allocation of time of investment professionals and the fees that we pay to Nuveen Real Estate Global Cities Advisors.
  • We cannot guarantee that we will make distributions, and if we do we may fund such distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources.
  • This is a “best efforts” offering. If we are not able to raise a substantial amount of capital in the near term, our ability to achieve our investment objectives could be adversely affected.
  • There are limits on the ownership and transferability of our shares.
  • If we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease and we could face a substantial tax liability.
  • Our investments in International Affiliated Funds may be subject to currency, inflation or other governmental and regulatory risks specific to the countries in which the Funds operate and own assets.

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