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Wednesday, 03 January 2018

TH Real Estate Enters Non-Traded REIT Business

Add TH Real Estate to the list of institutional real estate investment manager targeting retail investors with a non-traded REIT. Its entry, Nuveen Global Cities REIT Inc., will pursue stabilized properties. TH Real Estate has identified 31 areas around the U.S. and 60 elsewhere that it would target for investments.

Commercial Real Estate Direct Staff Report

TH Real Estate is joining Blackstone Group, Starwood Capital Group and other institutional investment managers in targeting retail investors with a non-traded REIT.

The company, an affiliate of Nuveen, the investment management arm of TIAA, has formed Nuveen Global Cities REIT Inc., through which it plans to raise up to $5 billion that it would use to invest in stabilized office, industrial, multifamily and retail properties in major cities in the United States, Canada, Australia, Europe and Asia. It also will invest in real estate equity securities and debt instruments.

Nuveen Global Cities bought its first two properties last month. It paid $54.1 million, or about $203,383/unit, for the 266-unit Kirkland Crossing Apartments in the Chicago suburb of Aurora, Ill. The complex, at 3055 Riverbirch Drive, is 94 percent occupied. The REIT also paid $16.9 million, or about $63.77/sf, for 844 North 47th Ave. in Phoenix. The 264,981-square-foot industrial building is fully leased.

Like other similar non-traded REITs sponsored by institutional investment managers, Nuveen Global Cities will have a perpetual life, meaning it's not planning to ever list its shares or liquidate its holdings. It expects to hold on to most of its properties for seven to 10 years. It will allow investors to redeem their shares monthly, subject to certain restrictions. The REIT will have an umbrella partnership, or Upreit structure, that will allow it to use shares in an affiliated partnership to buy properties.

TH Real Estate, which has some $107 billion of assets under management, will serve as the REIT's external manager. Michael J.L. Sales, TH Real Estate's chief executive, will serve in the same capacity at the REIT.

TH Real Estate hopes to replicate the success that Blackstone has had in raising capital for its non-traded REIT, Blackstone Real Estate Income Trust Inc. Since its launch in August 2016, it's raised more than...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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