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Nuveen Real Estate acquires nine multifamily assets in the U.S. for a new strategic portfolio

District at Washington external view of pool

Nuveen Real Estate completed the acquisition of nine multifamily properties in the United States to seed a new strategic investment portfolio focused on acquiring and managing institutional quality multifamily rental properties in select U.S. cities.

“As investors look to commercial real estate for income and diversification, we are
well-positioned to build an attractive portfolio of apartment assets that reflect the
dynamic and stable growth attributes of this sector,” said James Martha, Head of
U.S. Housing, Nuveen Real Estate. “We have over six decades of experience investing
in the multifamily sector and have established a strong platform to match client
capital with investment opportunities that respond to modern living needs.”

The nine-asset seed portfolio is comprised of Class A and B multifamily properties
totaling more than 3,000 units that have high, stable occupancy levels and span eight core U.S. markets. The portfolio features assets constructed since 2001 with
contemporary amenities that appeal to middle-income households, positioning it to
capture durable income over a long-term time horizon. Nuveen Real Estate will look
to add new high quality assets to the portfolio that are well-located in top-tier U.S.
cities and appeal to the largest base of renters: Millennials and middle-income
households (“MiMis”) who are renters by necessity rather than by choice.

According to its latest research, Think US: Investing in the MiMis, Nuveen
Real Estate believes that MiMis will continue to drive demand for apartments in the
coming decade as their contribution to the U.S. economy continues to grow.

“Millennials and middle-income households represent a stable and sustainable long-term source of demand for apartments, and Nuveen Real Estate believes this demand will continue to keep occupancy rates strong, particularly in metro areas benefiting from job growth and an expanding economy,” said Nikita Rao, Portfolio Manager.

Nuveen Real Estate’s U.S. direct multifamily residential equity and mortgage debt
investments are valued at over $17 billion*. The platform is comprised of 245 investments across 50 markets and multiple sub-sector types, including Class A and B, luxury, workforce housing and specialty demand properties, such as student and senior housing.

Added Rao, “We believe that our specialised investment teams, decades of
experience, local market knowledge and presence on the ground give us an advantage in terms of sourcing new opportunities in this dynamic sector. Our platform is well positioned to provide this portfolio with institutional quality deal execution balanced with speed, flexibility, risk mitigation and accuracy.”

The portfolio is part of Nuveen Real Estate’s Global Resilient Series which aims to
capitalise 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 customise 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.

Press office
Stewart Lewack
Stewart Lewack
Americas
*as of 31 December 2018.