25 October 2022
Nuveen Real Estate has completed the final close of CASA Partners IX, securing $410 million from two new investors, Bouwinvest and Samsung SRA Asset Management, on behalf of Samsung Life, and three U.S. institutional investors that are longstanding clients to the Nuveen platform.
CASA Partners IX, a closed-end value-add multifamily strategy, seeks to acquire and reposition rental properties that are well located in stable and growing markets and that have either been undercapitalized, overleveraged or mismanaged. Targeted assets will primarily consist of class B, garden-style communities that are valued below replacement cost, appeal to a wide range of household incomes and can achieve post-renovation rents at a significant discount to class A and newer product rents in the market. CASA Partners IX will also promote ESG standards by utilizing tax-exempt bond financing when available and by reporting to GRESB. The use of tax-exempt bond financing preserves affordable rental housing and provides low-cost debt for the portfolio and enhanced cash flow distributions to the investors.
“We are pleased with the strong support and interest that CASA IX received from both existing and new investors,” said Michael Schwaab, Portfolio Manager, Housing, Americas at Nuveen. “With a shortage of housing in the U.S., the current market continues to offer attractive opportunities to reposition assets and offer residents improved properties with affordable post-renovation rent. We look forward to pursuing strong returns for all of our partners through an investment portfolio that reflects the dynamic and stable growth attributes of the multifamily sector.”
“Bouwinvest remains on the lookout for global real estate investments where financial and social returns go hand in hand. Our focus is on resilient properties that generate a sound and stable income while also benefitting society as a whole. Workforce housing with a strong ESG component is therefore a perfect product for a pension fund,” said Gijs Plantinga, Director North American Investments at Bouwinvest.
“Samsung SRA Asset Management has a standing relationship with Nuveen Real Estate, and welcomes opportunities to cooperate with each other. As the asset manager responsible for all Samsung Life Insurance’s real estate investment, we are delighted to commit capital to CASA IX,” said Chung Keun Kim, CEO of Samsung SRA Asset Management. “The continued supply-demand imbalance coupled with soaring asset valuations in the U.S. housing sector awards more emphasis on the rental market; we believe Nuveen Real Estate’s presence and expertise in the market, proven by CASA series’ resilient track record, is going to offer strong risk-adjusted returns.”
To date, the Fund has already acquired six assets in markets across the U.S., investing approximately half of the committed capital. The properties are located in Lake Oswego (Portland), OR, Alpharetta and Decatur (Atlanta), GA, Durham, NC, Ahwatukee (Phoenix), AZ and Coconut Creek (Ft. Lauderdale), FL.