Source: Palladius Capital Management
AUSTIN, TX - Palladius Capital Management, a vertically-integrated real estate investment manager focused on pursuing multifamily, student housing, hospitality and select thematic investment strategies, 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.