New York Life Real Estate Investors closes real estate joint venture targeting special situation investments.

New York Life  |  January 15, 2025

NEW YORK - New York Life Real Estate Investors (NYLREI) today announced the closing of a new programmatic real estate joint venture targeting special situation investments. The evergreen vehicle, with an initial capital commitment of $300 million, targets a wide variety of investments including preferred equity, recapitalizations, and affordable housing.

Employing moderate leverage and targeting core-plus to value-added returns, the program will seek to invest across multiple sectors with an emphasis on multifamily and industrial. The program’s first two investments, which closed in December 2024, consist of an affordable multifamily asset in the Washington, D.C. area and a preferred equity investment in a pre-leased industrial development in South Carolina.

The investors consist of New York Life Insurance Company (New York Life) and PGGM. PGGM, a not-for-profit cooperative pension fund service provider, offers its clients pension management, asset management and management advice. Located in the Netherlands, PGGM, with more than €250 billion in assets under management, is one of the largest institutional investors in Europe.

With more than 100 years of investing experience, NYLREI is the real estate debt and equity investment arm of NYL Investors LLC, a wholly owned subsidiary of New York Life. NYLREI has approximately $68 billion in real estate debt and equity assets under management, as of Sept. 30, 2024. NYLREI invests across the capital stack and up and down the risk spectrum. The team includes more than 180 employees across five offices.

The venture will support and advance New York Life’s real estate strategy. According to Thomas O’Hanlon, NYLREI’s head of real estate equity, “This program allows New York Life to cast a wider net within the non-core real estate investing space, providing further diversification to the company’s portfolio. We are seeing a notable increase in the number of compelling transactions, so the timing is excellent to launch this venture.”

Paul Behar, NYLREI’s head of global business development, emphasized the strategic fit with PGGM. “Throughout our business development activities, we focus on working with like-minded investors with similar investment philosophies,” he said. “PGGM’s approach is well-aligned with that of NYLREI and we are delighted to work with them to help achieve their business objectives.”

ABOUT NEW YORK LIFE REAL ESTATE INVESTORS

New York Life Real Estate Investors (NYLREI) is a full service, fully integrated real estate enterprise with more than 180 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans and commercial mortgage-backed securities. With approximately $68 billion in assets under management as of Sept. 30, 2024,¹ NYLREI is actively seeking to acquire additional properties throughout the U.S.

NYLREI is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. For more information, please visit: www.nylinvestors.com.

1 REI AUM of $68.2B is gross and includes AUA ($0.6B) as of 9/30/2024. Net AUM for Real Estate Investors is $65.7B as of 9/30/2024.

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