TH Real Estate has raised $245m (€208m) of equity from three large US state pension plans and a German pension fund for its CASA Partners VII multifamily housing club fund, which it has now closed.
The property manager — an affiliate of TIAA’s investment management arm Nuveen — said that, once including leverage, the fund will be able to invest around $400m in value-add properties for the fund.
Jay Martha, head of US multifamily investments at TH Real Estate, said: “Institutional investor interest in US rental housing remains strong, reflecting the opportunities created by the current economic and demographic trends impacting this sector.”
The fund, which is the seventh in a series of multifamily housing club funds launched by the manager, is mainly focused on US value-add rental housing and aims to give its investors enhanced returns with high sustainable income, the firm said.
The CASA VII portfolio has already bought seven properties since its initial close. Five of these are in the process of being financed through municipal bonds that are exempt from federal, and in some instances, state income tax, in exchange for providing affordable workforce housing to communities.
“This debt strategy provides below market cost-of-financing for the fund, provides high-quality workforce housing where demand is high and can enhance income returns for the investors,” TH Real Estate said.
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