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TH Real Estate Targets $400 Million in Value-Add Properties

Closes CASA VII U.S. Multifamily Housing Fund
October 3, 2017
Ivy Hill Apartments in Walnut Creek, CA, is one of seven already purchased by CASA VII
Ivy Hill Apartments in Walnut Creek, CA, is one of seven already purchased by CASA VII
After raising $245 million equity from investors from three large U.S. state pension plans that are repeat CASA Funds investors and a German pension fund, TH Real Estate has closed CASA Partners VII, the seventh in a series of multifamily funds.

With leverage, the equity commitments will allow the fund to target a portfolio of approximately $400 million.

The fund is focused primarily on U.S. value-add rental housing and seeks to provide its investors enhanced returns with high sustainable income.

Since its initial close, the CASA VII portfolio has acquired seven properties, five of which are currently in the process of being financed through municipal bonds that are exempt from federal, and in some instances, state income tax, in exchange for providing affordable workforce housing to communities. This debt strategy provides below market cost-of-financing for the fund, provides high-quality workforce housing where demand is high and can enhance income returns for the investors.

“The CASA strategy takes an integrated approach, combining multiple value-enhancing investment strategies with income-enhancing, low-cost specialty bond financing to meet its goals,” said Jay Martha, TH Real Estate’s head of US multifamily investments.

The seven properties acquired for the CASA VII portfolio to date are as follows.

  • The Nine on Shoreline - Austin
  • Waterstone Apartments - Los Angeles
  • Bristol Village - Minneapolis
  • The Pillars at Great Bridge - Chesapeake, VA
  • Ivy Hill - Walnut Creek, CA
  • The Landings - Coconut Creek, FL
  • Rancho Hills - San Diego

    “Institutional investor interest in U.S. rental housing remains strong, reflecting the opportunities created by the current economic and demographic trends impacting this sector,” Martha added.

    Overall, Chicago-based TH Real Estate’s U.S. multifamily housing investment platform serves numerous funds and mandates and has 32,000 units in urban luxury, workforce and student housing assets under management, totaling $10 billion.

    TH Real Estate is an affiliate of Nuveen (the investment management arm of TIAA).

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