A $5 billion follow-on offering for Nuveen Global Cities REIT Inc., a publicly registered non-traded real estate investment trust, has been declared effective by the Securities and Exchange Commission.
The REIT expects to continue to invest in stabilized, income-oriented commercial real estate properties located in the United States, and to a lesser extent, Canada, Europe and the Asia-Pacific region, and real estate-related assets.
Nuveen Global Cities REIT’s $5 billion initial offering was declared effective by the Securities and Exchange Commission in January 2018 and had raised $323.6 million in investor equity as of mid-June 2021.
As of March 31, 2021, the REIT owned 18 properties valued at $550.9 million, as well as a portfolio of real estate-related securities valued at $40.8 million and investments in the international affiliated funds of $51.1 million.
Like its initial offering, Nuveen Global Cities REIT’s follow-on offering includes $4 billion in Class T, Class S, Class D, and Class I shares of common stock, as well as $1 billion in distribution reinvestment plan shares. Shares will be priced at the most recent net asset value per share, updated monthly, plus applicable fees and commissions.
Class T shares include a 3 percent selling commission, a 0.5 percent dealer manager fee, and an annual advisor stockholder servicing fee of 0.65 percent, and an annual dealer stockholder servicing fee of 0.20 percent. The minimum initial investment is $2,500.
Class S shares include a 3.5 percent selling commission and an annual 0.85 percent stockholder servicing fee. The minimum initial investment is $2,500.
Class D shares have no selling commissions and include an annual 0.25 percent stockholder servicing fee. The minimum initial investment is $2,500.
Class I shares have no selling commissions, dealer manager fees, or stockholder servicing fees. The minimum initial investment for Class I shares is $1 million.
Nuveen Securities LLC will serve as the offering’s dealer manager.
The REIT is externally managed its advisor, Nuveen Real Estate Global Cities Advisors LLC, an investment advisory affiliate of Nuveen Real Estate. Nuveen Real Estate is the real estate investment management division of the REIT’s sponsor, Nuveen LLC, a wholly owned subsidiary of Teachers Insurance and Annuity Association of America. TIAA has purchased $300 million of the REIT’s Class N shares.