Nuveen Real Estate's New Venture in Self-Storage
MyPlace Self-Storage To Serve as Dedicated Operating Partner
Nuveen, recognized as one of the world's largest real estate managers with a substantial portfolio valued at $141 billion, has officially closed a separately managed account for a major investment in the self-storage sector. This initiative involves an impressive initial equity commitment of $150 million from CalSTRS, along with an additional $16.6 million equity from the TIAA General Account, bringing the total investment to $166.6 million.
The strategic approach aims to target self-storage assets that span various risk levels in U.S. markets known for their strong demographics, limited supply, and minimal institutional ownership. The focus of this investment is to achieve attractive risk-adjusted returns by extensively managing a diverse portfolio and strategically expanding within the sector.
MyPlace Self-Storage, known for its operational excellence, has been appointed as the dedicated operating partner. Founded by Kurt O'Brien, who boasts over 30 years of experience, MyPlace has played a significant role in creating two major self-storage platforms in the U.S., handling transactions worth around $7 billion. Their expertise will be invaluable to this new initiative.
Melissa Reagen, Portfolio Manager at Nuveen Real Estate, expressed her enthusiasm, stating, "We are excited to launch this endeavor with CalSTRS. The self-storage market is resilient, characterized by consistent demand driven by life events such as marriage, relocation, and family changes. Our strategic focus on markets with limited supply positions us to excel in delivering robust performance while expanding our presence in this sector."
Kurt O'Brien, Founder of MyPlace Self-Storage, highlighted the investment's significance, saying, "This investment demonstrates the long-term growth potential of the self-storage sector. By merging our operational knowledge with Nuveen's investment strategies, we are poised to create significant value for our investors like CalSTRS."
Michael Hunter, Global Head of Housing and Alternatives at Nuveen Real Estate, elaborated on their track record, noting, "Since partnering with MyPlace in 2022, we've collectively acquired over $300 million in assets across numerous states and look forward to continuing this growth with CalSTRS due to our strong belief in the self-storage market."
With a track record in self-storage investment that dates back to 2003, Nuveen currently manages $2.7 billion in assets across more than 170 self-storage facilities throughout the country. Leveraging over 85 years of experience and a dedicated team of more than 750 employees across various global locations, Nuveen combines a wide-reaching network with extensive sector knowledge.
Media Contact
Andrew Chironna | 212.913.1015
About Nuveen Nuveen is the investment manager of TIAA, providing a comprehensive range of investment solutions tailored to meet the long-term financial objectives of both individual and institutional investors. With over $1.3 trillion in assets under management and operations spanning across 32 countries, Nuveen's investment professionals offer deep expertise in both traditional and alternative investment strategies. Discover more by visiting www.nuveen.com.
For inquiries regarding self-storage property management services, please visit www.myplaceselfstorage.com.
Frequently Asked Questions
What is the purpose of Nuveen's new investment?
Nuveen's investment aims to acquire and develop self-storage assets to generate strong risk-adjusted returns.
How much investment is being made by CalSTRS?
CalSTRS is making an initial equity commitment of $150 million towards the investment in self-storage.
Who is involved as the operating partner in this venture?
MyPlace Self-Storage will serve as the dedicated operating partner and property manager for the investment account.
What has been MyPlace's achievement in the self-storage sector?
MyPlace has developed two of the largest self-storage platforms in the U.S. and has managed significant transactions valued at $7 billion.
How long has Nuveen been investing in self-storage?
Nuveen has been investing in the self-storage sector since 2003 and currently oversees $2.7 billion in assets in this field.
