Asset Management Arm of TIAA Formally Announces Trades of Three Value-Add Properties in Separate Transactions in CA, VA and MN
The transaction in the San Francisco Bay Area’s East Bay suburban region is the latest in a series of value-add purchases of U.S. workforce rental housing by TH Real Estate, a Newport Beach, CA-based affiliate of Nuveen Investments, the asset management arm of TIAA.
The buyer plans to use newly acquired tax-exempt bond financing to upgrade interiors that will position Ivy Hill, built in 2003, as an alternative to the Bay Area’s more costly new construction. Walnut Creek is a high-end suburb of the Bay Area’s East Bay, with a highly rated school district. The property is within walking distance of retail, dining and the Walnut Creek BART station.
TH Real Estate also formally announced the separate purchases of properties in the Hampton Roads area of Virginia and Minneapolis, MN. The asset manager acquired Pillars at Great Bridge, a 192-unit Class B apartment property in Chesapeake, VA, outside of Norfolk. Built in 2009, the property, a mix of studio, one, two and three-bedroom units, benefits from the Hampton Roads tourism base and is accessible to highways connecting the area’s urban metros and major employment hubs. The buyer assumed and restructured an existing tax-exempt bond issue in the $27.4 million purchase from Greensboro, NC-based Bell Partners, Inc.
The asset manager also this year acquired Bristol Village Apartments, a 290-unit Class B property in Bloomington MN, from Plymouth, MN-based Dominium for about $50.8 million. Built in 1988, Bristol Village includes diverse floorplans, including town homes. TH Real Estate will modernize and upgrade interiors and common area amenities. The buyer obtained beneficial financing by assumed an existing tax-exempt bond issue.
Brian Eby, senior director with TH Real Estate, said all three properties have value-add potential and are located in stable markets with positive long-term fundamentals.
“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,” Eby added.
Please see CoStar COMPs #3938866, #3857069 and #3856987 for more information on these transactions.
