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TH Real Estate Closes Industrial Reg D Fund with $330 Million Equity Raise

TH Real Estate, an affiliate of Nuveen – the investment management arm of TIAA, has closed the TH Real Estate U.S. Strategic Industrial Fund I LP with a total capital raise exceeding $330 million.

TH Real Estate, an affiliate of Nuveen – the investment management arm of TIAA, has closed the TH Real Estate U.S. Strategic Industrial Fund I LP 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 company noted.

The fund plans to purchase 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. It plans to focus on properties in 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 US 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 has been investing in the industrial sector since 1953 and currently manages approximately $11.2 billion of industrial properties globally. The firm’s US industrial holdings total $8.8 billion across equity and debt investments, covering 998 properties.

“Investor interest in this asset class remains strong, reflecting the opportunities created by a growing economy and a supply shortage that keeps vacancy rates low and rents high,” added Graydon Bouchillon, head of U.S. Industrial for TH Real Estate. “The fund attracted a wide range of interest from sophisticated institutional investors, individuals and financial advisors, reflecting broad-based interested in our diversified investment strategy.”

The fund’s portfolio has acquired four US properties to date:

  • 301 Business Center, a Class A industrial development project totaling 863,600 sq. ft. located in Tampa, Florida
  • Empire Business Park, which consists of two multi-tenant business parks totaling 212,626 square feet located in Southern California’s Inland Empire
  • Serrano Business Park, a Class A industrial development consisting of three ifacilities totaling 327,080 square feet located in Southern California’s Inland Empire
  • 8575 Volta Drive, a Class A industrial warehouse totaling 168,425 square feet located in Houston

According to TH Real Estate’s THINK US Cities: 2019 Outlook, the firm forecasts that rent growth in the broad industrial sector will continue to outperform other sectors in 2019 as supply will remain constrained, especially for light industrial properties in urban areas that are benefiting from e-commerce activity.

TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America. The firm is one of the largest real estate investment managers in the world with $114 billion in assets under management and employees more than 530 real estate professionals located across 22 cities throughout the US, Europe and Asia-Pacific.

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