Key Takeaways
- • Nuveen Real Estate closed a separately managed account for CalSTRS to invest in U.S. self-storage, with an initial $150 million equity commitment from CalSTRS and a $16.6 million (10%) equity commitment from the TIAA General Account, for a total allocation of $166.6 million.
- • MyPlace Self-Storage, an Orlando, Florida-based operator founded in 2022 with 40 locations in 13 states, will manage the facilities.
- • The strategy targets acquisition and development of self-storage in markets with strong demographic trends, low supply forecasts and limited institutional ownership, aiming for attractive risk-adjusted returns.
- • Nuveen currently manages $2.7 billion in self-storage assets across more than 170 facilities nationwide, and has been investing in the sector since 2003.
Summary
Nuveen Real Estate, an asset manager and subsidiary of TIAA Investments, has closed a separately managed account for the California State Teachers' Retirement System (CalSTRS) to invest in self-storage nationwide, according to a PR Newswire press release. The collaboration includes an initial equity commitment of $150 million from CalSTRS and a 10% equity commitment of $16.6 million from the TIAA General Account, for a total allocation of $166.6 million. MyPlace Self-Storage will manage the facilities.
The strategy will focus on acquiring and developing self-storage in markets with strong demographic trends, low supply forecasts and limited institutional ownership. The release states the program seeks attractive risk-adjusted returns through portfolio aggregation and institutional-quality management and expansion.
Melissa Reagen, portfolio manager at Nuveen, said the firm is "excited to start and scale this new venture with CalSTRS," citing self-storage's resilience and demand driven by life-cycle events such as marriage, home moves and having children. Kurt O'Brien, founder of MyPlace, said the investment highlights the sector's continued long-term growth potential and that combining MyPlace's operational expertise with Nuveen's investment approach will deliver value for investors like CalSTRS.
Nuveen began investing in self-storage in 2003 and currently manages $2.7 billion in self-storage assets across more than 170 facilities nationwide. The firm acquired 92.4% of Swedish operator 24Storage in 2021, a deal that included 26 facilities and four more under development, and purchased a majority stake in Sweden-based Green Storage the same year. MyPlace, founded in 2022 and based in Orlando, Florida, operates 40 locations in 13 states.
The strategy will focus on acquiring and developing self-storage in markets with strong demographic trends, low supply forecasts and limited institutional ownership. The release states the program seeks attractive risk-adjusted returns through portfolio aggregation and institutional-quality management and expansion.
Melissa Reagen, portfolio manager at Nuveen, said the firm is "excited to start and scale this new venture with CalSTRS," citing self-storage's resilience and demand driven by life-cycle events such as marriage, home moves and having children. Kurt O'Brien, founder of MyPlace, said the investment highlights the sector's continued long-term growth potential and that combining MyPlace's operational expertise with Nuveen's investment approach will deliver value for investors like CalSTRS.
Nuveen began investing in self-storage in 2003 and currently manages $2.7 billion in self-storage assets across more than 170 facilities nationwide. The firm acquired 92.4% of Swedish operator 24Storage in 2021, a deal that included 26 facilities and four more under development, and purchased a majority stake in Sweden-based Green Storage the same year. MyPlace, founded in 2022 and based in Orlando, Florida, operates 40 locations in 13 states.
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