CalPERS, California’s public sector pension and health benefits agency, has made a $100 million investment in the Nuveen Real Estate U.S. Affordable Housing Fund.
“This allocation invests in both safe, accessible housing and the creation of community-wide benefits, driving long-term sustainable value and impact,” said Pamela West, portfolio manager for impact investing for Chicago-based Nuveen Real Estate, in a news release announcing the deal.
Nuveen’s U.S. Affordable Housing Fund, launched in 2023, strives to preserve housing for residents earning less than 80% of the area median income, with a large concentration of households making less than 60% of AMI.
“We see extraordinary potential in the U.S. affordable housing sector,” West said. “To move the needle, we drive value through energy efficiency and community programs, including healthcare, education, financial inclusion and employment services.”
California Public Employees' Retirement System, the largest defined-benefit public pension in the U.S., serves more than 2 million members. The agency also administers benefits for more than 1.5 million members and their families through a health program.
Growth mode
Nuveen is the investment manager of the Teachers Insurance and Annuity Association of America, more commonly known as TIAA. Its affordable portfolio currently comprises nearly 32,000 housing units valued at $6.3 billion.
Last year, Nuveen made one of the largest acquisitions in a slow year for sales, purchasing a portfolio of more than 12,000 units concentrated in New York City from New York-based Omni Holding Co.
Nuveen also has a strong presence in market-rate housing, ranking as the No. 4 apartment owner in the country with 84,697 units, according to the most recent National Multifamily Housing Council Top 50.
In May, the firm purchased the 282-unit The Barrington apartment property in the St. Paul, Minnesota, suburb of Woodbury for $48.6 million from Bethesda, Maryland-based owner Capreit. The property, which sits along the Interstate 494 corridor, was built in 1998.
“Nuveen has been very active on the multifamily side,” said CBRE Executive Vice President Abe Appert, who brokered the deal. “This is through their CASA series of funds, which is value-add in nature.”
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