Palladius Capital Management (“Palladius”), a vertically-integrated real estate investment manager focused on pursuing multifamily, student housing, hospitality and select thematic investment strategies, today announced the acquisition of The Heights, a 672-bed student housing property located in the Austin, TX suburb of San Marcos. The acquisition was made on behalf of Palladius Real Estate Fund I (“PREF I”), a private real estate investment fund focused on producing attractive risk-adjusted returns through the acquisition, management and disposition of equity interests in multifamily and student housing assets across the country.
The Heights, located thirty minutes away from downtown Austin and approximate to the Texas State University campus, enjoys strong leasing volume from the 38,000-student population. As part of its value creation strategy, Palladius plans to fully renovate the property’s 240 units. It will also re-amenitize common spaces, including the clubhouse and pool, FF&E and gym equipment and enhance the building’s exteriors.
“As increasing demand for student housing narrows cap rates, Palladius remains especially committed to our tactically contrarian approach to investing, which enables us to identify opportunities others overlook,” commented Nitin Chexal, CEO of Palladius. “We believe the Heights was acquired at an attractive basis and that this transaction will showcase our ability to recognize mispriced risk. We look forward to implementing our capital improvement plan to maximize the value of this well-located asset.”
The Heights represents the most recent acquisition made by the Palladius team along the I-35 corridor. The firm’s hands-on approach to asset and property-level management are critical elements of its risk control and value creation strategies and can be credited with contributing to its historic track record of delivering strong risk adjusted returns for its partners and investors.
About Palladius Capital Management
Palladius is a tactically contrarian real estate investment manager that leverages institutional best practices, technology and operational expertise to drive value creation for institutional and individual investors. Led by a team of commercial real estate, finance and technology veterans, Palladius pursues value-add and core-plus strategies targeting multifamily, student housing, hospitality and other thematic investment strategies through its affiliates. Based in Austin, TX, Palladius manages and operates approximately $500 million of real estate across the U.S. and is focused on building a highly progressive platform that promotes diversity and inclusion. To learn more, visit www.palladius.com.
*For informational purposes. Statements reflects the opinions of Palladius at the time of publication. Past Performance is not indicative of future results, and forward-looking statements reflect Palladius’ views with respect to future events which are subject to risks and uncertainties that could cause actual results to differ materially. Please note that all investments involve risks, including the risk of complete loss of invested capital.
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