TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), has held a final close for TH Real Estate U.S. Strategic Industrial Fund I, with a total capital raise exceeding $330 million. Including leverage, the equity commitments will allow the fund to target a portfolio of approximately $1 billion.
The fund seeks to acquire and develop bulk and light industrial assets in major U.S. industrial markets including last-mile locations that serve as a cornerstone of e-commerce supply chains. The fund focuses on properties in these top industrial markets that can be repositioned to generate higher occupancies and rent, as well as re-development opportunities and traditional warehouse and logistics facilities.
“While the traditional port-driven warehouse markets continue to grow at a consistent pace, online commerce is accelerating demand for state-of-the-art facilities that can facilitate same-day and one-hour deliveries in major metropolitan areas across the U.S.,” said Brad Simpkins, portfolio manager of the U.S. Strategic Industrial Fund. “A supply shortfall in these facilities coupled with healthy economic growth has generated significant pent-up demand for these industrial properties.”
TH Real Estate currently manages approximately $11.2 billion of industrial properties globally. The firm’s U.S. industrial holdings total $8.8 billion across equity and debt investments, covering 998 properties.
“The fund attracted a wide range of interest from sophisticated institutional investors, individuals and financial advisers, reflecting broad-based interested in our diversified investment strategy,” said Graydon Bouchillon, head of U.S. industrial for TH Real Estate.