N
uveen, the investment manager of TIAA and a global leader in real estate management with $141 billion in assets under its belt, has sealed a significant deal with the California State Teachers' Retirement System (CalSTRS) to invest in self-storage properties across the United States. This strategic partnership will see CalSTRS inject an initial equity commitment of $150 million, while TIAA's General Account will contribute 10% or $16.6 million, totaling a substantial allocation of $166.6 million.
The joint venture aims to capitalize on the growing demand for self-storage in U.S. markets characterized by robust demographic trends, limited supply forecasts, and scarce institutional ownership. By aggregating a portfolio of assets across various risk spectrums, implementing best-in-class management practices, and strategically expanding its asset base, the investment initiative seeks to deliver attractive risk-adjusted returns.
MyPlace Self-Storage, a vertically integrated self-storage company founded by industry veteran Kurt O'Brien, will serve as the dedicated operating partner and property manager for the account. With over 30 years of experience in the sector, O'Brien has developed two of the largest self-storage platforms in the U.S. and managed $7 billion in transactions.
"We're thrilled to embark on this new venture with CalSTRS," said Melissa Reagen, Portfolio Manager at Nuveen Real Estate. "Self-storage has proven to be a resilient asset class, driven by life cycle events that consistently generate demand across economic cycles. Our focus on undersupplied markets positions us well for strong performance and expansion in this space."
"This investment underscores the long-term growth potential of the self-storage sector," added Kurt O'Brien. "By combining our operational expertise with Nuveen's investment approach, we can deliver significant value to investors like CalSTRS."
Nuveen Real Estate has been investing in self-storage since 2003 and currently manages $2.7 billion in assets across over 170 facilities nationwide. With a global reach spanning 30+ cities and more than 750 employees, the platform offers unparalleled expertise in the sector.
Media Contact: Andrew Chironna | [email protected] | 212.913.1015
About Nuveen:
Nuveen is the investment manager of TIAA, offering a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. With $1.3 trillion in assets under management as of December 31, 2024, Nuveen operates in 32 countries and offers deep expertise across traditional and alternative investments through various vehicles and customized strategies. Visit www.nuveen.com for more information.
Learn more about self-storage property management services at www.myplaceselfstorage.com
