Nuveen, the asset management business of TIAA, announced Tuesday that the California State Teachers’ Retirement System will commit $150 million to the firm for a self-storage strategy.
MyPlace Self-Storage, an existing partner of Nuveen’s, will be the dedicated property manager and operating partner for the separately managed account. TIAA will also provide an equity commitment of $16.6 million.
“Self-storage has proven to be a resilient asset class with strong fundamentals,” said Melissa Reagen, a Nuveen Real Estate portfolio manager, in a statement. “Typically driven by life cycle events—such as getting married, moving homes, and having children—demand is consistent through economic cycles.”
Nuveen and MyPlace Self-Storage have partnered since 2022 and together have acquired more than $300 million in assets in more than a dozen states, according to a statement from Nuveen.
“This investment highlights the continued long-term growth potential of the self-storage sector,” said Kurt O’Brien, the founder of MyPlace Self-Storage, in a statement. “Combining our operational expertise with Nuveen’s investment approach allows us to deliver significant value for our investors like CalSTRS.”
Nuveen manages $141 billion in real estate assets, including $27 billion in self-storage assets. The firm manages $1.3 trillion in assets in total. CalSTRS manages $46.340 billion in real estate assets, 13.26% of the fund’s $349.5 billion portfolio.
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Tags: California State Teachers’ Retirement System, CalSTRS, Nuveen, Real Assets, TIAA