Nuveen Secures $150 Million from CalSTRS for U.S. Self-Storage Investments

Nuveen, a leading investment manager and a part of TIAA, has made headlines by closing a lucrative deal with the California State Teachers' Retirement System (CalSTRS). This collaboration marks a notable investment of $150 million aimed at enhancing Nuveen's footprint within the self-storage sector across the United States. Additionally, TIAA’s General Account is contributing $16.6 million, culminating in a total allocation of $166.6 million for this venture.

The self-storage sector has attracted considerable attention in recent years, primarily due to its resilient nature and the consistent demand driven by various life events such as marriage, relocation, or expanding families. This market is particularly appealing to investors looking for stability during economic fluctuations.

Nuveen's strategy focuses on not just acquiring but also developing self-storage properties in U.S. markets that exhibit strong demographic trends, limited supply, and minimal institutional presence. The aim is to deliver robust risk-adjusted returns through careful portfolio aggregation and an emphasis on institutional-quality management. This meticulous approach reflects Nuveen's effective and seasoned investment tactics honed over decades.

As part of this initiative, MyPlace Self-Storage will serve as the dedicated operating partner. MyPlace is headed by Kurt O'Brien, a well-known figure in the self-storage industry with over 30 years of experience. O'Brien's background includes the development of major self-storage platforms in the U.S. and managing transactions totaling approximately $7 billion. His expertise aligns well with Nuveen's growth ambitions.

Melissa Reagen, Portfolio Manager at Nuveen Real Estate, expressed enthusiasm for the new venture, noting the self-storage sector's strong fundamentals and resilience. She highlighted that the collaboration with CalSTRS and MyPlace is positioned to enhance their operational capabilities, particularly in undersupplied markets, thereby strengthening their investment performance.

Kurt O'Brien reaffirmed the long-term growth potential within the self-storage market, noting that their operational expertise, combined with Nuveen's strategic investment approach, promises significant value for investors like CalSTRS. This strategic partnership exemplifies how combining resources and expertise can lead to fruitful outcomes in the competitive investment landscape.

Since their partnership began in 2022, Nuveen and MyPlace have successfully acquired over $300 million in assets under management across more than a dozen states. The continued growth trajectory reflects not just confidence in the self-storage sector but also indicates a strong commitment to providing substantial returns to investors.

Nuveen Real Estate has been involved in self-storage investments since 2003 and currently manages a robust portfolio of $2.7 billion spread across more than 170 facilities nationwide. With over 85 years of real estate investment experience, the organization boasts a diverse team of over 750 professionals distributed across more than 30 cities in the U.S., Europe, and the Asia-Pacific region, offering both global reach and specialized knowledge.

In summary, the collaboration between Nuveen and CalSTRS presents a promising opportunity for growth within the self-storage market, clarifying both firms' commitment to exploring the potential of this resilient asset class. With strategic management and an established operational partner in MyPlace, they are well-equipped to navigate the complexities of this sector, ultimately benefiting their investors and solidifying positions in the marketplace.