NEW YORK, Sept. 19, 2023 — Nuveen, the $1.1 trillion asset manager of TIAA and one of the world’s largest real estate investment managers, today announced it has secured a $250 million commitment from the TIAA General Account to seed the Nuveen Real Estate U.S. Impact Housing Fund.
The core-plus, open-end fund is focused on generating strong risk adjusted returns and creating housing opportunities for low-income residents across the U.S., primarily by investing in a geographically diverse portfolio of properties, including housing with rent subsidies, rent restrictions, income restrictions and Naturally Occurring Affordable Housing (NOAH) assets. The fund also intends to invest in regenerative development and financing that supports minority and women developers of affordable housing.
Affordable housing is a compelling portfolio allocation, offering consistent income streams though different market cycles, strong demand and limited supply, due to guaranteed subsidized rent payments for a large portion of residents.
“As demand for affordable housing has intensified nationwide, more investors are seeking opportunities in this resilient housing sector that produces positive societal benefits and steady returns—both of which are also aligned to TIAA’s objectives,” said Pamela West, Portfolio Manager of Impact Investing at Nuveen Real Estate. “As a key component of healthy, sustainable communities, affordable housing also enhances economic activity and job creation.”
Nuveen has extensive experience investing in U.S. affordable housing dating back to 1992. Nuveen also has unique capabilities as a vertically integrated affordable housing property manager, operator and developer. Through these capabilities, Nuveen has dedicated portfolio management support for its affordable housing assets and can work with local communities to preserve and develop more affordable housing.
“We are one of the few truly vertically integrated fund managers that can build, invest in and operate quality, safe affordable housing across the country,” said Nadir Settles, Global Head of Impact Investing at Nuveen Real Estate. “By consistently reinvesting in our properties, we not only help our residents, but also build quality assets, which helps sustain investment value.”
In alignment with Nuveen Real Estate’s underlying mission, the fund will aim to address the preservation of housing for residents earning less than 80% of the Area Median Income (AMI), with a large concentration of households earning less than 60% AMI.
The U.S. Impact Housing Fund will also improve the quality of that housing through expenditures to help with environmental adaptability and enhance resident well-being through investment in resident services, like healthcare and education. All investments are expected to make a material step toward achieving important social and environmental outcomes in affordable housing in alignment with select UN Sustainable Development Goals.
Past performance of products associated with the Manager is not indicative of future results, and there can be no assurance that the Fund will achieve comparable results. In addition, an investment in the Fund and an investment in a securitization are different in many significant aspects, including structure, terms, fees and expenses. An investment in the Fund is subject to different risks and the result thereof may vary substantially.
Investing involves risk; principal loss is possible. Real estate investments are subject to various risks associated with ownership of real estate-related assets, including fluctuations in property values, higher expenses or lower income than expected, currency movement risks, environmental problems and liability, and risks related to leasing of properties. Please consider all risks carefully prior to investing in any particular strategy. The portfolio’s concentration in the real estate sector makes it subject to greater risk and volatility than other portfolios that are more diversified and its value may be substantially affected by economic events in the real estate industry.
Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well. ESG integration is the consideration of financially material ESG factors in support of portfolio management for actively managed strategies. Financial materiality of ESG factors varies by asset class and investment strategy. Applicability of ESG factors may differ across investment strategies. ESG factors are among many factors considered in evaluating an investment decision, and unless otherwise stated in the relevant offering memorandum or prospectus, do not alter the investment guidelines, strategy or objectives.
Nuveen, LLC provides investment solutions through its investment specialists. Nuveen Securities, LLC, member FINRA and SIPC.
Nuveen Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). Nuveen Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or Nuveen Alternatives Advisors LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Nuveen Securities, LLC, member FINRA.
About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.1 trillion in assets under management as of 30 Jun 2023 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.
Contact:
Rebecca Vignali
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SOURCE Nuveen
