Nuveen Raises $500M for Multifamily, Industrial Funds

Nuveen Real Estate has raised an additional $500 million across its US Cities Multifamily Fund and US Cities Industrial Fund.

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

“We continue to experience strong investor demand for the US Cities Multifamily Fund from institutions seeking income opportunities during what has proven to be an extremely challenging environment,” said Nikita Rao, portfolio manager, US Cities Multifamily Fund in prepared remarks.

“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 US Cities Industrial Fund has raised $836 million from 15 investors, which includes $176 million raised in its most recent closing from domestic and foreign institutional investors.

Focused on long term durable cash flow, the US Cities Multifamily Fund seeks to capitalize on demand from what Nuveen refer to as “MiMi” (millennials and middle income) household renters. The fund is currently diversified across several assets.

At the same time the US Cities Industrial Fund’s strategy and portfolio are performing very well, especially now, as COVID-19 has proven to be an accelerant for e-commerce activity, “bolstering secular demand trends for warehouse space,” said Brian Tilton, portfolio manager, US Cities Industrial Fund.

This fund targets investments that are anticipated to generate resilient and durable income through market cycles with focus on light industrial assets and US sunbelt markets. The fund’s portfolio is currently 98% occupied.