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TH Real Estate debt platform hits $3.8bn in originations at mid-year mark

Jack Gay DW

In the first half of 2017, TH Real Estate has closed and committed 43 transactions for its global commercial debt portfolios, totalling $3.8bn.

The investments are located across the US and UK and span the industrial, office, retail, and multifamily/student housing sectors.

"Mortgages in both the US and UK continue to offer good relative value versus other fixed income products and we are targeting an increase in loan origination across the risk spectrum," said Jack Gay, Global Head of Commercial Real Estate Debt at TH Real Estate. "For real estate investors, private debt is an increasingly inviting strategy given the current environment which is marked by low returns from fixed-income investments, high prices for equity investments that may appear risky and political uncertainty in many regions."

Transactions include:

  • A $200m first mortgage financing for Lerner Enterprises on 1775 Tysons Boulevard, a 473,000 sq ft property located in the Tysons Corner submarket of Washington, DC.
  • A $65m first mortgage financing for GID’s acquisition of Amaray Las Olas in Ft. Lauderdale, Florida, a 254 unit high-rise apartment building.
  • A $102m first mortgage financing for AIG and Synergy Investment's acquisition of The Hive in Boston. The 348,368 sq ft portfolio consists of five creative office properties located in the heart of downtown Boston and is collectively 86% leased to a diverse mix of 49 tenants.
  • A $55m junior floating rate mezzanine financing on behalf of a joint venture between TIAA's General Account and the Korean Teachers' Credit Union (via Meritz Real Estate Asset Management) for a portfolio consisting of 18 100% leased, biomedical office buildings in eight markets including, San Diego; Seattle and Denver.
  • A $125m junior mezzanine loan for the Millennium Portfolio. The 1.2 million sq ft portfolio consists of ten well-occupied retail and office properties in the major markets of New York, Washington DC, San Francisco and Miami.
  • A £165m 10 year senior loan secured on a portfolio of dominant town centre shopping centres in the UK, as part of a £265m two tranche, multi-maturity financing.
  • A £140m 10 year senior loan secured for Unite on the 3,067 bed Aston Student Villages property in Birmingham.

"The sector used to be more of a niche play but now an allocation to CRE debt is more frequently becoming part of institutional investors' fundamental line-up of income strategies," adds Jack Gay." With real estate equity markets currently experiencing pockets of volatility, elevated valuations, in a 'lower-for-longer' interest rate environment, many investors are prioritizing income ahead of capital returns. For these reasons, we view commercial real estate debt as the investment industry's superfood."

Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is an investment affiliate of Nuveen, LLC (“Nuveen”), the investment management arm of TIAA. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice. COMP201700452

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