Nuveen, the investment manager of TIAA, has debuted a 1031 real estate exchange platform.
The new platform is structured as an Umbrella Partnership Real Estate Investment Trust (UPREIT) program that will enable property owners to convert proceeds from real estate sales into a diversified ownership interest in Nuveen Global Cities Real Estate Investment Trust (GCREIT), a non-listed REIT that focuses on investing in commercial real estate properties.
Nuveen’s 1031 UPREIT program allows the conversion of proceeds from qualifying property sales into interests in a Delaware Statutory Trust (DST) owning real estate. According to the company, the new initiative is designed to help investors address key planning objectives, such as capital gains deferral, estate transition and portfolio diversification. It will also open a significant new capital raising avenue for GCREIT, introducing the benefits of investing in a non-traded REIT to high-net-worth property investors who may not have previously considered such structures.
“With global real estate rebounding and property values stabilizing after a challenging post-COVID period, we believe the market environment presents an opportune time and attractive entry point for the asset class,” said Jeff Carlin, head of global wealth advisory services at Nuveen. “Our 1031 UPREIT program addresses the significant number of clients seeking more tax-efficient, diversified real estate allocations. We are providing a very competitive solution that couples together a market-leading real estate platform and expertise with tax-advantaged and tax-managed approaches.”
