Nuveen receives investment from TIAA for America’s Impact Housing Fund dedicated to affordable housing
New York, September 19, 2023 /PRNewswire/ — Noveen, $1.1 trillion TIAA Asset Manager and one of the world’s largest real estate investment managers, today announced it has secured a deal 250 million dollars Commitment from the TIAA General Fund to establish the Nuveen Real Estate US Impact Housing Fund.
The Fund’s core and open-end fund focuses on generating strong risk-adjusted returns and creating housing opportunities for low-income residents across the United States, primarily by investing in a geographically diversified portfolio of properties, including housing with rental subsidies, rent restrictions, and rent restrictions. Income and Naturally Occurring Affordable Housing Assets (NOAH). The fund also intends to invest in renewable development and financing that supports minority and women’s affordable housing developers.
Affordable housing is an attractive investment portfolio, providing stable sources of income despite various market cycles, strong demand and limited supply, due to guaranteed subsidized rental payments for a large segment of the population.
“As demand for affordable housing intensifies nationwide, more investors are looking for opportunities in this resilient housing sector that produces positive community benefits and consistent returns – both of which are also consistent with TIAA’s goals,” he said. Pamela West, Impact Investing Portfolio Manager at Nuveen Real Estate. “As a key component of healthy, sustainable communities, affordable housing also promotes economic activity and job creation.”
Nuveen has extensive experience investing in affordable housing in the United States dating back to 1992. Nuveen also has unique capabilities as a vertically integrated manager, operator and developer of affordable housing properties. 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 vertically integrated fund managers that can build, invest and operate high-quality, safe and affordable housing across the country,” said Nader Settles, Global Head of Impact Investing at Nuveen Real Estate. “By continually reinvesting in our properties, we are not only helping our residents, but we are also building high-quality assets, which helps maintain investment value.”
In keeping with Nuveen Real Estate’s core mission, the fund will aim to address housing preservation for residents earning less than 80% of the Area Median Income (AMI), with a significant concentration of households earning less than 60% of the AMI. For the region.
The American Impact Housing Fund will also improve the quality of this housing through expenditures to aid environmental resilience and enhance the well-being of residents by investing in resident services, such as health care and education. All investments are expected to take a tangible step towards achieving significant social and environmental outcomes in affordable housing in line with the Sustainable Development Goals set by the United Nations.
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 similar results. In addition, investing in a fund and investing in a securitization differ in several important aspects, including structure, terms, fees, and expenses. An investment in the Fund is subject to various risks and results may vary significantly.
Investing involves risks. Principal loss is possible. Real estate investments are subject to various risks associated with the ownership of real estate-related assets, including fluctuations in real estate values, higher expenses or lower than expected income, currency movement risks, environmental and liability issues, and risks related to renting real estate. Please consider all risks carefully before investing in any particular strategy. The portfolio’s concentration in the real estate sector makes it exposed to greater risks and fluctuations than other, more diversified portfolios, and its value may be significantly affected by economic events in the real estate industry.
Responsible investing includes environmental and social governance (ESG) factors that may impact exposure to issuers, sectors and industries, limiting the type and number of investment opportunities available, potentially excluding well-performing investments. ESG integration is the consideration of financially material ESG factors to support portfolio management for actively managed strategies. The financial importance of ESG factors varies by asset class and investment strategy. The applicability of ESG factors may vary across investment strategies. Environmental, social and governance (ESG) factors are among the many factors taken into account when evaluating an investment decision and, unless otherwise stated in the relevant offering memorandum or prospectus, do not change the investment guidelines, strategy or objectives.
Nuveen, LLC provides investment solutions through its investment professionals. Nuveen Securities, LLC, Member FINRA and SIPC.
Nuveen Real Estate is a real estate investment management holding company owned by the Teachers Insurance and Annuity Association of America (TIAA). Novin Real Estate securities products distributed in north america It is advised by its UK regulated affiliates or Nuveen Alternatives Advisors LLC, a registered investment advisor and wholly-owned subsidiary of TIAA, and is distributed by Nuveen Securities, LLC, Member FINRA.
Novin, Investment Director at TIAA, offers a comprehensive range of results-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Noveen has $1.1 trillion In assets under management as of June 30, 2023 And operations in 27 countries. Its investment professionals offer deep expertise across a comprehensive range of traditional and alternative investments through a broad range of customized tools and strategies. For more information, please visit www.nuveen.com.
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