Nuveen Real Estate, the $139 billion global investment arm of TIAA, has closed its U.S. Strategic Debt Fund at $650 million, surpassing its initial $500 million target and marking the firm’s first closed-end credit vehicle in commercial real estate.
The fund focuses on transitional commercial real estate loans across the U.S. and received a $150 million anchor commitment from TIAA’s General Account, alongside a mix of foreign and domestic insurance companies and pension funds.
Since its first close in April 2024, the fund has already deployed capital across 19 deals totaling $1.3 billion in gross loan commitments, with a portfolio that is 60% multifamily and 40% industrial across 16 markets. Key concentrations include Dallas–Fort Worth (18% of GAV), Atlanta (10%), and Orlando (9%).
The strategy centers on originating senior, floating-rate loans tied to transitional properties undergoing physical, operational, or financial repositioning. It leans on Nuveen’s established debt platform, which manages $44 billion in CRE debt globally and originates about $4.7 billion annually.
KEY QUOTE:
“We are pleased with the strong investor response to our U.S. 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 capitalize on what we believe are attractive opportunities in an environment where traditional lenders have pulled back.”
Jason Hernandez, Head of Real Estate Debt, Americas at Nuveen Real Estate
