Nuveen appointed Chad Phillips as its new Global Head of Nuveen Real Estate, effective immediately.

Courtesy of Nuveen

Chad Phillips joined Nuveen in 2019 and has led multisector fundraising and management teams.

Phillips now oversees a $141B portfolio of assets under management spanning 22 countries, according to Nuveen, the investment manager of pension fund and financial giant Teachers Insurance and Annuity Association of America. 

He’s taking over at a time when Nuveen sees potential value in commercial real estate.  

“The painful reset of private real estate seems to be in the rearview mirror, and we expect 2025 to be a good vintage for real estate investment,” analysts at Nuveen Global Cities REIT wrote in a Dec. 31 report. “Values have stabilized, total returns are positive in most markets and the dearth of new construction activity bodes well for medium-term fundamentals.”

Phillips is replacing Chris McGibbon, a 25-year industry veteran who had been in the role since 2016 and now plans to retire. Phillips will also chair the Nuveen Real Estate Global Executive Leadership Team, which oversees the firm’s strategic initiatives. 

He first joined Nuveen in 2019 and was most recently responsible for leading investment and fundraising teams across the office, healthcare, retail and mixed-use sectors. Phillips earned his undergraduate degree from Davidson College in North Carolina and a master’s degree in real estate from Georgetown University. 

Phillips will lead the department from Nuveen’s office in Charlotte. The investment manager is based in Chicago and also has a major presence in New York, where TIAA is based, a spokesperson told CoStar. 

McGibbon will stay on until June 30 to ensure a smooth transition. 

Commercial real estate transaction volume is broadly expected to pick up in 2025 as investors, owners and lenders previously frozen by hopes of better underwriting accept today’s tough market conditions are likely to persist, especially in light of President Donald Trump’s new trade policies and tariffs. 

Global brokerage firm executives expect growing transaction volume, which is expected to pick up in the back half of the year before gaining more traction in 2026, will boost their bottom lines. And the recent sell-off across the stock market has not only been less painful for commercial real estate stocks compared to other sectors, it also has made the asset class a more attractive investment.

“We think investors should have exposure to real estate stocks,” analysts at J.P. Morgan wrote in a recent note to investors. 

Wafra Inc. has completed the sale of Short Pump Station, a 91,369-square-foot shopping center in the suburbs of Richmond, Virginia, to Nuveen Real Estate. Wafra had owned the property, located at 11301 W Broad St, Glen Allen, since acquiring it from a joint-venture affiliate of AMCap in 2021.

The sale represents the first realization of Wafra’s core plus vehicle, which launched in 2021. Wafra was advised on the sale by a Cushman & Wakefield team led by John Owendoff. The property is anchored by grocery retailer Trader Joe’s, and Short Pump Station attracts 2.3 million annual visits, putting it in the top 15% of shopping centers nationally.

“Short Pump Station aligns perfectly with our grocery-anchored neighborhood retail strategy in the growing and dynamic Short Pump submarket,” said Ryan Boan, U.S. Head of Retail Transactions at Nuveen Real Estate. “Short Pump Station is our second acquisition in the Richmond MSA.”

The global financial sector is anticipated to grow, not just in 2025 but through 2030. In addition, banks and other institutions plan to boost their workforces by looking for talent with skills in data analytics, AI, cybersecurity, and software engineering. To attract those employees, these companies will upgrade their office designs to improve the workplace experience.

This is one development found in JLL’s just-released “Financial Services Real Estate Trends to Watch” for 2025. Other things to look for include the following.

The Impact of AI and Technology

• According to research, 65% of financial firms have a strategy for AI integration; these companies are developing AI use cases for real estate management. Additionally:

• 67% plan to increase CRE technology spending by 2030

• 62% anticipate their office spaces will be tech-enabled by 2030

The report said that areas likely to see automation include daily occupancy planning, workplace design and fit-out, project design and construction workplace strategy and lease administration.

Changing Demographics and Wealth Management

The report estimates that by 2045, over $84 billion in assets could be transferred from baby boomers to millennials. This means that wealth management firms need to “reimagine spaces for younger clientele. “

Additionally, wealth management centers are blending digital and in-person experiences and expanding into urban cores and suburban markets. The trend also demonstrates ground-floor stand-alone spaces and co-locations with retail branches.

Greater Alignment with Business Demands

“The role of CRE leaders in financial services is evolving from operational tasks to strategic business partnering,” the report explained. As a result, commercial real estate strategies should align with business objectives, including company growth plans, talent strategies and client needs.

Additionally, CRE functions are shifting reporting structures closer to that of operations and human resources. “By successfully navigating challenges like talent shortages and technology implementation, CRE leaders can position themselves as key drivers of innovation and growth,” according to the report.

A Focus on Premium Assets

Anticipated talent growth will likely mean higher portfolio utilization by 203. This will increase the focus on design and employee experience and the demand for high-quality assets in key locations.

However, “firms are encountering difficulties in finding suitable space in gateway markets due to limited supply,” the report said. Because of this, expansions might take place in non-traditional financial hubs.

With the rate of office-to-residential conversions accelerating, a new venture has formed with plans to pursue $1B of the notoriously complex developments.

The former New York City FBI headquarters building converted to apartments by TF Cornerstone at 201 E. 69th St.

Dune Real Estate Partners and TF Cornerstone formed Alta Residential, a joint venture that plans to target buildings with high barriers to entry in transit-oriented residential neighborhoods. The partners are eyeing New York City, Washington, D.C., Boston, Charlotte, Raleigh, Atlanta, Dallas, San Francisco and Los Angeles, according to an announcement by the two New York City-based firms.

“Investors have reacted very positively to Alta as a means to access high quality urban residential, and we have already received significant interest from a wide range of investors,” Dune CEO Dan Neidich said in a statement.

TFC, founded by brothers Thomas and Fred Elghanayan, has developed more than 21M SF of residential and commercial properties, mostly in their hometown of New York. The company was formed in 2009 after a coin toss decided how they would break up the $3B real estate empire they owned with their brother, Henry, who runs Rockrose Development.

The private developer owns and operates nearly 12,000 residential units in Manhattan, Brooklyn and Long Island City, along with over 4M SF of commercial, office and retail space in New York, D.C., Virginia and Pennsylvania.

TFC has completed 5M SF of commercial to residential developments across 15 projects. Those conversions include 95 Horatio St., a former refrigeration facility in Manhattan’s Meatpacking District that was converted to 318 residential units, and The Fairfax, a former New York City FBI headquarters building at 201 E. 69th St., which was converted to 313 residences.

As part of the joint venture, TFC plans to oversee and partner with Alta to convert certain New York City office buildings into apartments, according to the announcement. A spokesperson couldn’t provide further details prior to publication.

In a statement, TFC CEO Thomas Elghanayan said that he is “confident that we’ll be able to scale Alta very quickly.”

Dune brings with it opportunity fundraising experience, according to the announcement. Since launching in 2005, the firm has raised over $4B of equity capital, including through its funds and other investment vehicles. It invests on behalf of public and private pension funds, sovereign wealth funds, educational endowments and other large institutions as well as high net worth investors. 

It has experience with bold projects in the city — it is a partner with Turnbridge Equities on the Bronx Logistics Center, a 1.2M SF industrial development that was one of the first multistory warehouses in the city. A deal was in place for New York City to lease or buy it for as much as $670M, but that was scuttled after a New York City Council oversight hearing looked into real estate contracts handed out by Mayor Eric Adams’ administration.

Standard Real Estate Investments and Trammell Crow Company (TCC), have closed on the sale of the Woodridge Industrial Center in Woodridge, Illinois.

Standard made an equity investment through its $150 million investment vehicle last year, and construction was completed in July 2024. This is the first sale in the investment vehicle. Harris Architects was the architect of record, FCL was the general contractor, and SpaceCo served as the civil engineer on the Woodridge Industrial Center.

Located at 8110 Lemont Rd., the 217,000-square-foot facility is located on a 17-acre parcel in the Village of Woodridge. The new development includes 22 dock doors with 130-foot truck courts, a single-load, 291-foot deep building and 270 parking spaces.

“The record-setting rent growth and growing demand for modern Class A industrial space made the project appealing to investors seeking in-fill core assets,” said Josh Udelhofen, Senior Vice President with TCC Chicago.

Alexandria Real Estate Equities, Inc. announced the completion of the sale, through an affiliate, of 1165 Eastlake Avenue East in its Lake Union submarket of Seattle to longstanding tenant Fred Hutch Cancer Center.

Alexandria developed and delivered the fully leased 100,086-square-foot, single-tenant life science facility in 2021. It sold for $150.0 million at a strong capitalization rate of 4.9%. As part of the transaction, Alexandria, through an affiliate, entered into a strategic joint venture partnership with Fred Hutch with respect to each of 1201 and 1208 Eastlake Avenue East through a transfer of partial interests from the prior joint venture partner to Fred Hutch. Alexandria’s ownership interest in each of 1201 and 1208 Eastlake remains unchanged at 30%.

“This opportunity allows us to swiftly advance our research and expand our South Lake Union campus in the heart of Seattle’s life science and biotech community,” said Thomas J. Lynch Jr., MD, president and director of Fred Hutch. “We appreciated the collaborative relationship with Alexandria as we explored and finalized this important agreement that will support our mission to prevent, treat and cure cancer and infectious disease.”

The Boston Planning and Development Agency’s board has approved Boston University’s real estate plan for its Charles River campus through 2026, reported the Boston Business Journal. The plan includes major renovations to Warren Towers and Mugar Memorial Library and a new school of global studies.

The changes to Warren Towers, BU’s signature dormitories, include improved bathrooms and HVAC systems and repairs to the building envelope. The board also okayed a large lab complex on Wentworth Institute of Technology property a month after tabling the proposal, along with two office-to-housing conversions and Jones Street Investment Partners’ 236-unit apartment building behind the convention center in South Boston.  

The BU approval is for the school’s institutional master plan, the Business Journal reported. The plans typically cover 10 years, but the university sought a stopgap version in order to give new BU President Mellisa Gilliam time to help determine her vision for the campus.

Divaris Real Estate, in partnership with Silverline Equities, has been selected to provide office leasing services for The Offices at the Village at Shirlington, an office destination within Federal Realty’s Village at Shirlington.

Located in the heart of Arlington’s arts and entertainment district at 2700 S. Quincy Street, The Offices at the Village at Shirlington sits at the intersection of Campbell Avenue and South Quincy Street, offering easy access to I-395 and public transportation. The Village at Shirlington is lined with a variety of amenities, including cafes, restaurants, and shops, nearby parks and green spaces, AMC Cinemas, as well as the Tony Award-winning Signature Theatre.

“We are thrilled to partner with Federal Realty Investment Trust,” said Erik Ulsaker, Executive Vice President at Divaris Real Estate. “The Offices at the Village at Shirlington present a unique opportunity for businesses seeking high-quality boutique office space in one of Arlington’s most desirable locations.”

Hilco Real Estate (HRE) has made a significant expansion of its real estate receivership practice. The Northbrook, IL-based firm hired Matthew Mason as SVP, and he brings a team with him to HRE.

Mason joins HRE with 24 years of experience in real estate and fiduciary services. His background includes assisting institutional clients, lenders, and private investors with distressed real estate and serving as a court-appointed receiver for more than 200 retail, office, multifamily, industrial, hotel, and mixed-use projects.

Joining him at HRE are Andrew Streeter, who specializes in asset management of distressed assets through the takeover and disposition process; Robert Jones, a 20-year veteran of asset management, property management, leasing, negotiation and disposition; and Spencer Ruberti, who has more than 15 years of experience in commercial real estate, specializing in distressed assets and court-appointed receiverships.

“We are thrilled to welcome Matt to the Receivership group at HRE,” said Neil Aaronson, CEO at HRE, “With Matt’s extensive industry expertise and proven track record, we are confident that he and his team will offer a tremendous resource to our clients, securing, maintaining and right-sizing operations for individual real estate assets and portfolios.”

Pictured: Matthew Mason.

With the perception that real estate values are bottoming, one of the biggest private equity players in the industry is planning to ramp up its property acquisitions in the coming months.

Bisnow/created with assistance from Microsoft Copilot

KKR sees larger opportunities to buy commercial real estate in the rest of 2024.

After spending $8B in the second quarter on mostly real estate buys, as of April 1, New York-based KKR & Co. had closed or was under contract to outlay $10B in real estate equity, KKR co-CEO Scott Nuttall said on the firm’s earnings call Wednesday.

“The real estate investment opportunity is highly compelling,” Nuttall said, adding that the firm has a “full pipeline as some owners of real estate seek liquidity and sell their best assets.”

“And in this environment, scale is trading at a discount,” he said. 

KKR generated $668M of net income in the second quarter, and its revenue in the first six months of 2024 doubled year-over-year to $13.8B. It increased its assets under management by 16% to $601B, including $152B in real assets, which includes real estate, according to its earnings report. 

Last month, KKR purchased 18 multifamily properties from Charlotte-based Quarterra for $2.1B. The apartment portfolio encompasses 5,200 units spread across several states, including California, Washington, Florida, Texas and Georgia. KKR is also under contract in a joint venture with Dalan Management to buy a 43-story Brooklyn apartment tower for $240M, The Real Deal reports.

“We believe this is a great moment to invest in real estate, as transaction activity starts to pick up on the heels of two years of dislocation in commercial real estate markets,” KKR partner and Head of Real Estate Equity in the Americas Justin Pattner said in a press release announcing the Quarterra deal.

KKR is joining a growing chorus of investors signaling that they are getting more aggressive about buying properties. Blackstone bought $34B in real estate in the second quarter, including taking both Apartment Income REIT and Tricon Residential private, after which President Jonathan Gray said CRE values are bottoming out, with more buyers hitting the market.

“Volatility and uncertainty are still with us. So far, 2024 feels like it could be a sweet spot year where values are attractive and activity levels are high,” Nuttall said on the earnings call. “This year, we not only have an open market, we have pent-up supply of deals that didn’t get done the last couple of years coming to market, so we are optimistic.”