TIAA Real Estate Arm Opens in South Florida – Daily Business Review (registration)

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Manuel Martin of TH Real Estate.

Miami’s position between Latin America and the rest of the Southeastern U.S. made it the ideal location for TH Real Estate’s new regional office.

Formerly known as TIAA Henderson Real Estate, TH Real Estate was fully acquired by TIAA in 2015. The global real estate investment management company has since operated as a standalone subsidiary of TIAA Global Asset Management.

TH Real Estate’s Miami-based team will focus on strengthening the company’s third-party institutional business and will oversee acquisitions, dispositions and asset management for the portfolio the firm manages across the Southeast and Latin America.

The company manages $10.5 billion of real estate investments, or 36 million square feet across both regions. TIAA’s South Florida holdings total $2.56 billion in Miami-Dade, Broward and Palm Beach counties.

“As an active investor throughout the Southeast region for many decades, we continue to see pockets of opportunity in cities with geographic supply constraints, improvements in infrastructure and transportation, and positive demographic and economic growth,” said Manuel Martin, who relocated from Madrid to head the Miami office. “Interest from both domestic and foreign institutional investors remains steady, and we believe that having a local presence in the markets where our clients want to invest — coupled with expert execution and our long-term view that goes beyond market cycles — is the best way to serve them.”

TH Real Estate plans to invest or place debt in South Florida industrial and retail properties, Martin said. The company is bullish on the region’s industrial sector, which is marked by high tenant demand due to limited supply. The region’s demographics and income profile also favor the retail industry, which makes its assets attractive.

“Miami is very attractive to investors,” Martin said. “It’s a place where population growth is always on the rise.”

The firm is focused on core Class A product in urban centers. While the “temperature is high” in the multifamily and office sectors, Martin said his team will be cautiously selective when investing in those fields.

He leads a four-member group in temporary space in Coral Gables until setting up shop in a permanent location at the Courvoisier Centre in Miami’s Brickell Key. By May, the new office will be home to a 10-member team, he said.

TH Real Estate manages the Waterford at Blue Lagoon office park, the 801 and 701 Brickell Ave. office towers, the Residences at Merrick Park in Coral Gables and The Manor at Flagler Village in Fort Lauderdale, which TIAA recently purchased for $114 million.

The move correlates with TH Real Estate’s introduction to the U.S. as an investment manager. TIAA is one of the largest providers of retirement services in the academic, research, medical and cultural fields.