July 10, 2017 – TH Real Estate, an affiliate of Nuveen (the asset management arm of TIAA) has recently completed the purchase of three value-add multifamily properties in separate transactions.
TH Real Estate’s U.S. workforce multifamily housing investment strategy targets garden-style, rental housing in infill locations with the potential for high current income and value appreciation potential. A focus on value-enhancing upgrades to amenities and common areas combined with low-cost financing via tax-exempt bonds underpin the strategy.
- Ivy Hill – Walnut Creek, CA: Located in the downtown area of Walnut Creek, CA, Ivy Hill is a premier boutique apartment community. Built in 2003, the property’s value-add potential can be achieved by executing interior upgrades, partially financed with a new tax-exempt bond issued upon acquisition, that position it as an alternative to the area’s more costly new construction. The asset is located in a highly desirable Bay- Area suburb with a top-rated school district, and is within walking distance to high-end retail, dining, and the Walnut Creek BART station.
- Pillars at Great Bridge – Chesapeake, VA: Built in 2009, the Pillars at Great Bridge is a Class B, 192 unit property with a mix of studio, 1, 2 and 3 bedroom units. Located outside of Norfolk, VA, the property is accessible to Interstates 64, 464 and 254, all of which connect to the surrounding urban metros and major employment hubs. The community also benefits from the Hampton Roads region’s tourism industry, which accounts for 22 percent of businesses in the area. The acquisition of this asset included the assumption and restructuring of an existing tax-exempt bond issue.
- Bristol Village Apartments – Bloomington, MN: Built in 1988 Bristol Village is a Class B, 290 unit property in the Minneapolis-St. Paul area. It contains diverse floorplans, including town homes. TH Real Estate’s value-add strategy includes unit upgrades which will offer modern interiors and updated common area amenities at competitive rents. Additionally, an existing tax-exempt bond issue was assumed upon acquisition of the asset, providing an accretive financing structure.
“These acquisitions are consistent with one of our primary multifamily investment strategies of acquiring quality communities with value-add potential in stable markets and positive long-term fundamentals,” said Brian Eby, Senior Director, TH Real Estate. “Throughout our 20-year track record in workforce housing, we’ve successfully invested throughout all points in the investment cycle, and believe that current economic and demographic trends will continue to provide opportunities for multifamily investing that may result in strong performance for our investors.”