Nuveen Acquires Omni Holding's Affordable Housing Portfolio

Nuveen, the asset management arm of the Teachers Insurance and Annuity Association of America (TIAA), has acquired NYC-based Omni Holding’s portfolio, encompassing 12,000 affordable housing units.

More than 10K of the units acquired by Nuveen are located in NYC, with most of the balance in the surrounding Tri-State region, including Newark and Long Island, with a handful of properties in the portfolio located in other states across the US.

A sale price for the transaction was not disclosed.

Nuveen, which has an estimated $1.1 trillion in assets under management, said the Omni acquisition will increase the company’s affordable housing holdings to $6.4B, encompassing 32K units in 24 states.

In announcing the deal, Nuveen also said it plans to launch its US Impact Housing Fund, a core-plus, open-end vehicle, later this quarter.

The company said the fund will focus on generating strong risk-adjusted returns and building resilience among low-income communities in the US, primarily by investing in rent-subsidized, income-restricted and Naturally Occurring Affordable Housing (NOAH) assets.

Omni was co-founded in 2004 by former New York Mets star Mo Vaughn. The company acquired or rehabilitated 94 affordable housing projects and at its peak had a portfolio that encompassed 19K units.

As part of the transaction, Nuveen said it is acquiring Omni’s “best-in-class affordable housing capabilities in development, construction, maintenance, safety-technology and corporate functions to create an enhanced, vertically integrated affordable housing asset management business for Nuveen.”

“The combination of Omni’s best-in-class capabilities and the fund launch will bolster Nuveen’s position to deliver a market-leading and scaled impact investment platform,” the company said, in a statement.

JLL advised Nuveen on the Omni acquisition. Omni was advised by CBRE Affordable Housing in partnership with CBRE Capital Advisors.

Most of Nuveen’s affordable housing portfolio serves low-income residents earning 60% of area median income or less. The company said its mission is to preserve existing affordable housing units and protect at-risk units from market-rate conversions so residents can remain in their homes.

“Our goal is to meaningfully invest in the preservation and expansion of high-quality affordable housing to support the well-being of rent-burdened residents within local communities,” said Pamela West, Senior Portfolio Manager of Impact Investing at Nuveen Real Estate, in a statement.

“The acquisition strongly advances our ability to promote greater financial inclusivity, and health and wellness in communities that have lacked meaningful and lasting investment,” said Nadir Settles, Global Head of Impact Investing at Nuveen Real Estate.

Nearly half of US renters are rent-burdened, the company said, meaning they are paying more than 30% of their income toward rent. Within this rent-burdened demographic, one in four renters are severely rent-burdened, meaning they pay more than 50% of their income toward rent, Nuveen said.