Nuveen Global Cities REIT’s DST Program Raises $63.1M in Third Quarter
Nuveen Global Cities REIT Inc. raised $63.1 million through its Delaware statutory trust program in the third quarter, more than half of the $119.8 million the program has raised since its June 2025 launch, the nontraded real estate investment trust reported Nov. 9.
The program, run through the REIT’s operating partnership, is authorized to sell up to $3 billion in beneficial interests in DSTs holding real properties. The interests are sold to accredited investors seeking replacement property for Section 1031 exchanges. Each DST property is leased back to a subsidiary of the operating partnership under a master lease guaranteed by the operating partnership.
The operating partnership holds a fair market value option to acquire the DST interests or the underlying properties for operating partnership units or cash, starting two years after each DST offering closes. Investors who receive units can generally ask the operating partnership to redeem them after a one-year holding period. AltsWire reported the platform’s launch in May 2025.
In July, Nuveen announced the close of Nuveen Real Estate Exchange I DST, or NREX I, a $58.7 million offering backed by three Class A light industrial buildings totaling 405,756 square feet in two Minneapolis submarkets. The buildings were fully leased to five tenants, the company said.
“At a time when investors are navigating significant market uncertainty, the strong demand for NREX I reflects a clear appetite for the stability and diversification that institutionally managed real estate can provide,” said Jeff Carlin, Nuveen’s global head of wealth and retirement advisory services, in a July 8 statement.
As of Sept. 30, the DST program held five properties: Elston Plaza, a retail property in Chicago; Hembree Park, an industrial property in Roswell, Ga.; Henderson Square, a retail property in King of Prussia, Pa.; Mountain View, an industrial property in Salt Lake City; and UP Minneapolis, an industrial portfolio in Minneapolis.
The REIT reported $70.5 million in gross offering proceeds for the quarter. It repurchased $52.9 million in shares, satisfying all repurchase requests. Monthly repurchases ranged from 0.71% to 0.85% of net asset value, below the share repurchase plan’s 2% monthly limit. The REIT said it has satisfied all repurchase requests since inception.
Class I NAV per share was $11.20 as of Sept. 30, and the REIT’s aggregate NAV was $2.29 billion. Class I shares had an average annualized distribution rate of 5.52% for the quarter and a year-to-date total return of 3.49%, without upfront selling commissions, the REIT reported.
During the quarter, the REIT acquired DuPage Crossing, a fully leased light industrial property in Chicago, for $29.1 million, and The Plaza at Park 51, a medical outpatient building in Charlotte, N.C., for $27.2 million. It also originated a $42 million senior loan to finance the acquisition of a seven-story multifamily property in Houston.
The REIT recorded a $16.8 million unrealized loss on commercial mortgage loans in the quarter, primarily tied to its senior and mezzanine loans on 9-90 Corporate Center, an office property in Framingham, Mass. The loans matured in November 2025 without repayment and have been on nonaccrual status since the fourth quarter of 2025. Discussions with the borrower are ongoing, the REIT said.
The loss was more than offset by a $17.4 million unrealized gain on a participation in the senior loan, which the REIT sold to unaffiliated parties but which did not qualify for sale accounting. The mezzanine loan was carried at a fair value of $11.6 million on $23.3 million in principal as of Sept. 30. Net income for the quarter was $1.2 million, compared with $5.5 million a year earlier.
Nuveen Global Cities REIT was formed in May 2017 and is sponsored by Nuveen LLC, a wholly owned subsidiary of Teachers Insurance and Annuity Association of America. It is externally managed by Nuveen Real Estate Global Cities Advisors LLC. Its third public offering, of up to $5 billion in shares, was declared effective in November 2024. As of Sept. 30, the REIT had received $3.4 billion in aggregate proceeds from its public offerings, private offerings, and DST interest sales.
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