TH Real Estate, a Nuveen affiliate, has raised over $330 million for its U.S. strategic industrial fund. TH Real Estate U.S. Strategic Industrial Fund I LP will focus on acquiring and developing bulk and light industrial assets in major U.S. industrial markets.
December 13, 2018 – TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), closed the TH Real Estate U.S. Strategic Industrial Fund I LP (“the Fund”) with a total capital raise exceeding $330,000,000. Including leverage, the equity commitments will allow the Fund to target a portfolio of approximately $1 billion.
The Fund seeks to selectively acquire and develop bulk and light industrial assets in major U.S. industrial markets including last mile locations that serve as a cornerstone of e-commerce supply chains.
The Fund focuses on well-located properties in these top industrial markets that can be repositioned to generate higher occupancies and rent, as well as re-development opportunities and traditional warehouse and logistics facilities.
“While the traditional port-driven warehouse markets continue to grow at a consistent pace, online commerce is accelerating demand for state-of-the-art facilities that can facilitate same-day and one-hour deliveries in major metropolitan areas across the U.S.,” said Brad Simpkins, portfolio manager of the US Strategic Industrial Fund. “A supply shortfall in these facilities coupled with healthy economic growth has generated significant pent-up demand for these industrial properties.”
TH Real Estate has been investing in the industrial sector since 1953 and currently manages approximately $11.2 billion of industrial properties globally. The firm’s US industrial holdings total $8.8 billion across equity and debt investments, covering 998 properties.
“Investor interest in this asset class remains strong, reflecting the opportunities created by a growing economy and a supply shortage that keeps vacancy rates low and rents high,” added Graydon Bouchillon, Head of US Industrial for TH Real Estate. “The Fund attracted a wide range of interest from sophisticated institutional investors, individuals and financial advisors, reflecting broad-based interested in our diversified investment strategy.”
The Fund’s portfolio has acquired four US properties to date:
· 301 Business Center, a “Class A” industrial development project totaling 863,600 sq. ft. located in Tampa, Florida
· Empire Business Park, which consists of two multi-tenant business parks totaling 212,626 sq. ft. located in Southern California’s Inland Empire
· Serrano Business Park, a “Class A” industrial development consisting of three facilities totaling 327,080 sq. ft. located in Southern California’s Inland Empire
· 8575 Volta Drive, a ”Class A” industrial warehouse totaling 168,425 sq. ft. located in Houston
According to TH Real Estate’s THINK US Cities: 2019 Outlook, the firm forecasts that rent growth in the broad industrial sector will continue to outperform other sectors in 2019 as supply will remain constrained, especially for light industrial properties in urban areas that are benefiting from e-commerce activity.
About TH Real Estate
TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), is one of the largest real estate investment managers in the world with $114bn in AUM. We provide access to every aspect of real estate investing. With over 80 years of investing experience, and more than 530 real estate professionals located across 22 cities throughout the US, Europe and Asia-Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.
Our investment, asset management and corporate strategies grow from a deep understanding of the structural trends that we believe will shape the future of real estate and responsible investing beyond market cycles. This ‘Tomorrow’s World’ approach sits at the core of our investment process and business operations, informing our long-term view of real estate investments for the enduring benefit of both clients and society.