Nuveen Real Estate, a global real estate investment manager owned by TIAA, is planning a significant expansion of its multifamily real estate business in the U.S.

Nuveen announced this week that it launching what it calls the “U.S. Cities Multifamily Fund,” a real estate investment vehicle that will acquire and manage multifamily rental properties in the U.S.

The fund just closed on its first investment round, which raised $550 million to invest in multifamily real estate. According to Nuveen, the investment was anchored by a $450 million capital commitment and seed portfolio from an unnamed “third-party investor,” along with a $100 million co-investment from TIAA.

With that capital on hand, the fund will seek to acquire “well-located properties with high, stable occupancy levels located in top-tier cities and select growth markets across the U.S.,” Nuveen said.

According to the company, its strategy is to focus on “high-quality” renters who rent out of “necessity” not by choice, specifically Millennials and middle-income households.

“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.

The fund launched with a portfolio of nine multifamily Class A and B properties with more than 3,000 total units in eight markets.

Nuveen is no stranger to U.S. real estate investing. The company claims that its U.S. direct multifamily residential equity and mortgage debt investments are valued at more $17 billion.

The company’s portfolio includes 245 investments across 50 markets and multiple property types, including Class A, Class B, luxury, workforce housing and specialty demand properties, such as student and senior housing.

And now, the company is planning on growing its multifamily market share.

“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, 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.”