With $500 Million Total Allocation from CalPERS, Nuveen Underscores Commitment to Preserve Affordable Housing and Build Resilient Communities

Rhea-AI Summary

Nuveen announced that CalPERS is expanding its commitment to Nuveen Real Estate's affordable housing strategy with an additional $400 million allocation. This follows CalPERS' previous $100 million investment in the Nuveen Real Estate U.S. Affordable Housing Fund in June 2024, bringing the total commitment to $500 million. Nuveen's affordable housing portfolio currently includes over 32,000 housing units across the U.S., valued at over $6 billion. The investment aims to preserve access to affordable housing while implementing environmentally sustainable improvements.

Positive

• Secured $400 million additional allocation from CalPERS
• Total commitment from CalPERS reached $500 million
• Portfolio includes 32,000 housing units valued at $6 billion

Negative

• None.

Insights

Financial Analyst

This $500 million allocation by CalPERS to Nuveen's affordable housing strategy represents a significant capital commitment in the real estate sector. The expansion from an initial $100 million to an additional $400 million demonstrates strong institutional confidence in Nuveen's execution capabilities. With a current portfolio of over 32,000 housing units valued at $6 billion, this new capital injection will meaningfully expand their operational capacity.

The investment aligns with growing institutional interest in social impact investing while targeting steady returns in the defensive affordable housing sector. For investors in Nuveen-managed vehicles like JRI, this signals robust institutional backing and potential for increased deal flow in the affordable housing space. The partnership with CalPERS, the largest public pension fund in the U.S., adds credibility and could attract additional institutional capital to similar strategies.

NEW YORK, Nov. 20, 2024 /PRNewswire/ -- Nuveen, the investment manager of TIAA, announced today that CalPERS, California's public sector pension and health benefits agency, is expanding its commitment to Nuveen Real Estate's affordable housing strategy with an additional $400 million allocation.

This second allocation of $400 million is made to a separately managed account (SMA) focused on affordable housing and follows the June 2024 announcement of CalPERS' $100 million investment in the Nuveen Real Estate U.S. Affordable Housing Fund, bringing CalPERS' total commitment to the strategy to $500 million.

"The lack of affordable housing has been a multi-decade crisis in the U.S. We are grateful for CalPERS' continued commitment to our affordable housing strategy as we seek to support a broad range of social benefits for communities and to generate steady, accretive returns," said Pamela West, Portfolio Manager for Impact Investing, Nuveen Real Estate. "This investment will preserve access to safe and deeply affordable housing while making environmentally sustainable improvements."

Nuveen is one of the nation's largest, vertically-integrated institutional managers of affordable housing. The firm's U.S. affordable housing platform seeks to generate strong risk-adjusted returns and build resilience among communities in the U.S. through access to safe, quality affordable housing. In total, Nuveen's portfolio currently comprises over 32,000 housing units across the U.S., valued at over $6 billion. 

The largest defined-benefit public pension in the U.S., CalPERS serves more than 2 million members in its retirement system and administers benefits for more than 1.5 million members and their families in its health program.

Media Contact
E-Soo Kim | E-Soo.Kim@nuveen.com | 551-224-4919

About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.3 trillion in assets under management as of 30 Sept 2024 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/with-500-million-total-allocation-from-calpers-nuveen-underscores-commitment-to-preserve-affordable-housing-and-build-resilient-communities-302310903.html

SOURCE Nuveen

FAQ

How much did CalPERS allocate to Nuveen's affordable housing strategy in 2024?

CalPERS allocated a total of $500 million to Nuveen's affordable housing strategy in 2024, consisting of an initial $100 million investment in June and an additional $400 million allocation.

What is the current size of Nuveen's affordable housing portfolio?

Nuveen's affordable housing portfolio currently comprises over 32,000 housing units across the U.S., valued at over $6 billion.

What is the purpose of CalPERS' investment in Nuveen's affordable housing strategy?

The investment aims to preserve access to safe and deeply affordable housing while making environmentally sustainable improvements, supporting community benefits and generating steady returns.