Nuveen Real Estate’s U.S. Cities Multifamily and U.S. Cities Industrial strategy raise over $500 million

Nuveen Real Estate, one of the world’s largest real estate investment managers, has raised an additional $500 million across its U.S. Cities Multifamily and U.S. Cities Industrial strategies.

Since its launch, the U.S. Cities Multifamily strategy has raised $1.02 billion from eight investors, including $327 million raised in its most recent closing from institutional investors in the U.S. and abroad.

“We continue to experience strong investor demand for the U.S. Cities Multifamily strategy from institutions seeking income opportunities during what has proven to be an extremely challenging environment,” said Nikita Rao, Portfolio Manager, U.S. Cities Multifamily strategy. “The cities we invest in remain attractive destinations for middle income and millennial renters, supporting our thesis that these locations are resilient and continue to deliver attractive long-term cash flow opportunities.”

Launched earlier this year, the U.S. Cities Industrial strategy has raised $836 million from 15 investors, which includes $176 million raised in its most recent closing from domestic and foreign institutional investors.

“The U.S. Cities Industrial strategy and portfolio are performing very well in the current environment during which COVID-19 has proven to be an accelerant for e-commerce activity, bolstering secular demand trends for warehouse space,” said Brian Tilton, Portfolio Manager, U.S. Cities Industrial strategy.

Focused on long term durable cash flow, the U.S. Cities Multifamily strategy seeks to capitalise on demand from what we refer to as “MiMi” (millennials and middle income) household renters. The strategy is currently diversified across several assets representing thousands of units located in U.S. growth markets characterised by high, stable occupancy rates, strong labour markets and a robust tenancy composition.

The U.S. Cities Industrial strategy targets investments that are anticipated to generate resilient and durable income through market cycles with a strategic overweighting to light industrial assets and U.S. sunbelt markets. The well-leased portfolio, currently 98% occupied, continues to demonstrate its resiliency with a high-quality tenant roster with little near-term lease rollover, resulting in durable and sustained income.

Both strategies are included in Nuveen Real Estate’s Global Resilient Series of open-end, core real estate, which recently launched the sixth and final strategy, the U.S. Cities Office strategy, completing the series and offering investors a comprehensive, cohesive and customisable real estate solution for investors focused on diversification, income and long-term capital growth.

“The Global Resilient Series puts Nuveen in a unique position to offer our clients a cohesive global solution to real estate equity investing. Through our proprietary filtering process we target assets and locations we believe are best positioned for long-term demographic and structural growth. This helps us look beyond market cycles by focusing on future-proof cities and resilient locations. The successful capital raise for the series demonstrates the appeal with investors. A global approach to core real estate allocation allows investors to optimise their strategy and risk management through tailored diversified exposure,” said Wendy Pryce, Managing Director, Real Estate Product Specialist.

The Global Resilient Series leverages Nuveen Real Estate’s unique combination of global reach and local execution capabilities. The series is comprised of six core strategies—four sector-specific strategies in the U.S., and two diversified, pan-regional strategies investing in Europe and Asia Pacific, respectively—that represent over $5 billion of assets in over 35 leading resilient cities globally.