Nuveen Real Estate has raised $650m (€559m) for its US debt fund, exceeding its initial $500m target.
The value-add US Strategic Debt Fund was backed by a $150m commitment from the general account of TIAA, Nuveen’s parent company, along with contributions from institutional investors, including foreign and domestic insurers and pension funds.
Nuveen said the fund is its first closed-ended commercial real estate debt offering and is focused on transitional debt opportunities across the US.
The fund’s strategy is to originate senior, floating-rate loans secured by properties requiring physical, operational or financial restructuring.
The fund, which held its first close in April 2024, has since made 19 investments totaling $1.3bn in gross loan commitments. The current portfolio is diversified across 16 markets, with allocations of 60% to multifamily and 40% to industrial properties.
Jason Hernandez, head of real estate debt, Americas at Nuveen Real Estate, said: “We are pleased with the strong investor response to our US Strategic Debt Fund, which reflects the confidence institutional investors have in our debt platform and the compelling opportunity we see in today’s commercial real estate lending market.
“The successful close positions us well to capitalise on what we believe are attractive opportunities in an environment where traditional lenders have pulled back.”
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