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Nuveen, the investment manager of TIAA, has purchased a 12,000-unit affordable housing portfolio from Omni Holding Co. The price of the transaction was not disclosed, but the deal is believed to be one of the largest of this year so far.
The portfolio includes 10,000 affordable units mainly located in New York City’s Queens, Bronx and Brooklyn boroughs, as well as properties situated in Texas, Massachusetts, Maryland and other states, according to the Wall Street Journal. The deal also includes existing buildings in need of rehabilitation and undeveloped land, which could create approximately 8,000 more low-income housing units.
Nuveen will manage the portfolio on behalf of the TIAA General Account, which will own 161 affordable housing investments with approximately 32,000 units across 24 states following this transaction.
CBRE Affordable Housing, in partnership with CBRE Capital Advisors Inc., negotiated on behalf of Omni Holding, while Jones Lang LaSalle Securities LLC represented Nuveen. Nixon Peabody LLP and Paul Hastings LLP provided transaction and regulatory counsel services.
Helping with the affordable housing shortage
The acquisition increases Nuveen’s affordable housing assets under management’s value to $6.4 billion. The company continues to preserve existing affordable housing and also protect units under the risk of market-rate conversion. Its impact housing portfolio mainly serves low-income residents earning 60 percent or less of the area median income.
The firm’s global impact investment initiative, aimed at expanding affordable, sustainable and climate-safe housing in the U.S., Europe and Asia-Pacific region, launched last year. The framework targets up to $15 billion in real estate assets under management by 2026.
Nuveen also plans to launch its U.S. Impact Housing Fund later this quarter. The core-plus, open-end vehicle will focus on investing in rent-subsidized, income-restricted and Naturally Occurring Affordable Housing (NOAH) assets.
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