Nuveen Real Estate has announced the final close of its US Strategic Debt Fund at $650m (£492m) in total equity commitments, exceeding its initial target size of $500m.
The real estate investment manager, which has $139bn in assets under management, said the debt fund represents Nuveen’s first closed-end fund offering in the commercial real estate credit space and focuses on transitional commercial real estate debt opportunities across the US.
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Nuveen said the fund benefits from significant alignment through TIAA’s General Account commitment of $150m, along with a diverse institutional investor base including foreign and domestic insurance companies and pension funds.
It employs a financing strategy that originates senior, floating-rate loans secured by transitional real estate properties requiring physical, operational, or financial restructuring.
Since its first close in April 2024, the fund has deployed capital across 19 investments totaling $1.3bn in gross loan commitment. Its portfolio is currently diversified across multifamily (60 per cent) and industrial (40 per cent) properties in 16 markets nationwide.
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“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,” said Jason Hernandez, head of real estate debt, Americas, at Nuveen Real Estate.
“The successful close positions us well to capitalize on what we believe are attractive opportunities in an environment where traditional lenders have pulled back.”
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