NEW YORK, NY - TIAA-CREF and TIAA Henderson Real Estate announced that CASA Partners VI, L.P., the sixth in a series of multifamily housing funds, had its final close after raising $260 million in equity from investors. With leverage, the equity commitments will allow the Fund to target a portfolio of approximately $420 million.
CASA VI, the latest fund to close in the established CASA series of funds, is focused primarily on U.S. workforce housing and seeks to provide its investors enhanced returns with high sustainable income. The portfolio team for the CASA funds has a track record exceeding 20 years and manages $2.2 billion in apartment assets with more than 18,850 units across 26 U.S. markets (as of June 30, 2014).
“This is apartment investing with a difference,” said Jay Martha, Managing Director of North American Real Estate for TIAA-CREF Asset Management. “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.”
Since its initial close, the CASA VI portfolio has acquired two properties, each 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. Tax-exempt bonds are issued for the development or rehabilitation of market rate housing. This debt strategy provides below market leverage for the fund, which supports enhanced income returns for the investors.
The two properties acquired for the CASA VI portfolio to date are:
Boca Vista Apartments – Altamonte Springs, FL
Paseo Park Apartments – Glendale, AZ
Since inception in December 1993, the CASA Series has executed on more than $3 billion in apartment transactions and successfully implemented diverse value-add investment strategies over multiple market cycles.
TIAA Henderson Real Estate Limited (TH Real Estate) is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA) and Henderson Global Investors. TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc., member FINRA.