Nuveen Real Estate has launched the  U.S. Cities Multifamily Fund, a real-estate investment  that will acquire and manage multifamily rental properties across the U.S.

The fund has a $450 million capital commitment and a seed portfolio from a third- party investor, alongside a $100 million co-investment from Nuveen Real Estate’s parent company, TIAA.

“As investors look to commercial real estate for income and diversification, we are well-positioned to build an attractive portfolio of apartment assets that reflect the dynamic and stable growth attributes of this sector,” said James Martha, head of U.S. housing for Nuveen Real Estate. “We have over six decades of experience investing in the multifamily sector and have established a strong platform to match client capital with investment opportunities that respond to modern living needs.”

The fund seeks to acquire well-located properties with high, stable occupancy levels located in top-tier cities and select growth markets across the U.S. The fund’s strategy focuses on high-quality assets that appeal to the largest base of renters: Millennials and middle-income households who are renters by necessity rather than by choice. The fund launched with a diverse portfolio of nine assets, spanning eight core markets and more than 3,000 units.

According to its latest research, THINK US: Investing in the MiMis, Nuveen Real Estate believes that millenials and middle-income households will continue to drive demand for apartments in the coming decade as their contribution to the U.S. economy continues to grow.

“Millennials and middle-income households represent a stable and sustainable long-term source of demand for apartments, and Nuveen Real Estate believes this demand will continue to keep occupancy rates strong, particularly in metro areas benefiting from job growth and an expanding economy,” said Nikita Rao, portfolio manager of the fund.