AUSTIN, Texas--(BUSINESS WIRE)--Palladius Capital Management (“Palladius”), a vertically-integrated real estate investment manager with both debt and equity investment strategies, today announced the acquisition of nine residential real estate assets with a total capitalization of $579 million, including five multifamily and four student housing communities, totaling more than 2,500 units.
Palladius’ acquisition strategy focused on investments in opportunistic and value-add residential real estate assets. For multifamily investments, Palladius targeted high-growth markets across the country with strong fundamentals, including positive trends in employment such as job and wage growth, re-urbanization, education, and infrastructure development. For student housing investments, Palladius targeted universities with high application/enrollment growth positioned to take advantage of flagship university spillover. By strategically investing in residential real estate assets with these qualifications, Palladius expects to generate favorable risk-adjusted returns for its investment partners. Palladius acquired the portfolio on behalf of a recently closed Palladius-sponsored private real estate investment fund, which raised approximately $112 million in equity primarily in the private wealth channel.
“The successful deployment of this fund speaks to our team’s ability to strategically invest throughout various macroeconomic environments,” said Marko Velazquez, Senior Managing Director at Palladius Capital Management.
“Despite constriction in capital markets activity and transaction volume that sidelined many of our peers, we were able to take advantage of early tailwinds from a trajectory flip in interest rates and leverage our team’s deep knowledge of our markets and residential asset classes to acquire properties at an attractive basis,” said Manish Shah, Senior Managing Director at Palladius Capital Management.
Nitin Chexal, CEO of Palladius Capital, commented: “We are pleased with the outcome in a highly challenging environment. We look forward to the continuation of value creation for our institutional and private wealth investment partners and our community tenants.”
Palladius’ investment strategies, focused on creating short- and long-term value for its investors, are informed by decades of investment and property-level operating experience as well as deep local market knowledge. The firm’s rapid AUM growth since its inception in July 2021 reflects the evolution of its platform, extensive network of relationships, and compelling value proposition.
About Palladius Capital Management
Palladius is a diversified real estate investment manager that leverages institutional best practices, technology and operational expertise to drive value creation for institutional and individual investors through private wealth channels. Led by a team of commercial real estate, finance, and corporate operations veterans, Palladius pursues value-add and core-plus strategies targeting multifamily, student housing, hospitality and other thematic investment strategies through its affiliates. Palladius also originates debt investments and acquires whole loans through its private REIT, Palladius Income Fund. Based in Austin, TX, Palladius, through its affiliates, manages and operates approximately $950 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.
