Recent Acquisitions

The Chloe Residences

342 Unit Multifamily | Kyle, TX (Austin MSA)

Sep 2022

Acquisition Date

342

Multifamily Units

75.0%

Occupancy at Acquisition

3 Years

Target Hold Period

Description

The CHLOE Residences is a brand-new 342-unit community located in the booming South Austin suburb of Kyle, TX. The property anchors the Dry River District, a 65-acre mixed-use development including medical, hotel, and over 300,000 SF of walkable retail space (Costco, Home Depot, Evo, and a Starbucks to name a few). The asset was completed in July 2022 and consists of 11 three-story residential buildings and a clubhouse across 15 acres.  Amenities include a resort-style pool, high-tech fitness center, game lounge, co-working and group workspaces, dog park, playground, and entertainment kitchen. 

Location

3400 Kyle Crossing, Kyle, TX 78640

Opportunity & Execution

Execution: Value Add 

Deal Source: Off-market

  • Leveraged a strategic relationship with a merchant builder to acquire a newly built, pre-stabilization, Class A asset in what is arguably the hottest MSA in the country at a price adjusted for the surety of execution.

  •  As a merchant builder with a develop-and-sell business strategy, various “Other Income” opportunities were left unexplored which creates a clear path for immediate value-add.

  • We plan to be heavily hands-on with the existing management company to ensure the elevation of leasing operations and close the gap between in-place rents and comparable Class A assets through the remaining lease-up period and beyond.

  • Considering the vintage of the asset, our renovation program is limited to enhancing the common areas and introducing other revenue-generating amenities such as car ports and extended pet yards. 

  • The property is well positioned to capitalize on the convergence of two rapidly growing cities in Austin from the North and San Antonio from the South. 

  • This asset is a fresh addition to the existing portfolio and re-iterates our dedication and focus on the IH-35 Corridor that links Dallas, Austin, and San Antonio. 

100 Forest Park

234 Unit Multifamily | Oak Park IL

Mar 2022

Acquisition Date

234

Multifamily Units

94.9%

Occupancy at Acquisition

4 Years

Target Hold Period

Description

100 Forest Place is a 234-unit multifamily asset located in the heart of downtown Oak Park, with grocers, pharmacies, financial institutions and over 30 restaurants within a 3-block radius. The Oak Park neighborhood provides convenient access to the entire metropolitan area via Interstate 290, positioned within 10 miles of the Chicago CBD.  The asset was completed in 1986 and consists of a 16 two-story tower, 9 buildings featuring townhomes, and 7,985 SF of commercial retail space.  Amenities include a rooftop deck, a 24-hour fitness center, and a clubroom with panoramic city views.

Location

100 Forest Place, Oak Park, IL 60301

Opportunity & Execution

Execution: Value Add 

Deal Source: Relationship based (fully marketed)

  • Leveraged local market knowledge, in-house construction management team and previous success with heavy value-add assets to acquire a well located, asset of this vintage
 
  • The property is largely untouched with only one of their retail spaces currently leased, providing further opportunity to drive income
 
  • Our renovation program is targeting heavy value-add to 100% of the units in a 2-year span in addition to re-amenitizing common areas and enhancing building exteriors
 
  • Property is well positioned to capitalize on the significant demographic shifts taking place within the dynamic Chicago market

 

  • This asset will add market diversity to the initial Texas acquisitions of Dominion Square, Montabella, Ranch at Shadow Lake, and The Heights

     

The Heights ( Texas State University )

672 Bed Student using | San Marcos TX

Feb 2022

Acquisition Date

240 / 672

Units / Beds

97.0%

Occupancy at Acquisition

4 Years

Target Hold Period

Description

Built in 2005, The Heights is a 240-unit, 672-bed student housing apartment community located in the city of San Marcos, TX and less than a 10-minute drive to the Texas State University (TXST) campus. The Heights has excellent proximity to the TXST campus through the usage of the university shuttle route, which has a direct stop in front of the property. The asset is also highly amenitized, offering students a full array of amenities that include a fitness center, swimming pool, basketball and volleyball courts and business center.

Location

1101 River Ridge Parkway, San Marcos, TX 78666

Opportunity & Execution

Execution: Value Add 

Deal Source: Relationship based (fully marketed)

  • Leveraged local market knowledge, in-house construction management team and previous success with student housing assets along the I-35 corridor
 
  • Seller is structured as a TIC and undercapitalized the asset, resulting in extensive deferred maintenance and an opportunity to lift rents through renovations
 
  • Our renovation program is targeting a light value-add to 100% of the units in a 2-year span in addition to re-amenitizing common areas and enhancing building exteriors, leaving a further value-add opportunity to unit interiors at disposition for the next buyer
 
  • Property is well positioned to capitalize on the university’s expected enrollment increase of 6,200 students by 2026

 

  • This asset will add diversity to the previous acquisitions of Dominion Square, Montabella, and Ranch at Shadow Lake, by adding a student housing asset

     

The Ranch at Shadow Lake

624 Unit Multifamily | Houston TX

Play Video

Dec 2021

Acquisition Date

624

Multifamily Units

874

Average Unit SF

4 Years

Target Hold Period

Description

The Ranch at Shadow Lake is a 624-unit multifamily community primed for both interior and amenity value-add located in the high-growth Westchase District and within a ten-minute drive of the Energy Corridor in West Houston. The asset was built in two phases in 1998 and 1999 and spans an impressive 27.93-acre site. Each phase is wholly contained with full amenities including gated access, various grill/picnic areas, and 2 of each resort-style pool, clubhouse/event center, fitness center, business center and picturesque lakes.

Location

2920 Shadowbriar Drive, Houston, TX 77082

Opportunity & Execution

Execution: Value Add 

Deal Source: Off-market

  • Based on surety of execution, experience in the Westchase District and a long-standing relationship with the seller, Palladius was able to close the acquisition “off-market” at a significant discount to an otherwise fully marketed value
 
  • The Seller bought this asset 5-years ago and completed a light value-add to 55 units, generating meaningful rent growth and proving the demand for a more premium product
 
  • Our renovation program is targeting 50% of the units in a 3-year span in addition to re-amenitizing common areas and enhancing building exteriors, leaving a sizeable value-add opportunity at disposition for the next buyer
 
  • A rebranding as “The Beverly Shadow Lake” will accompany the renovation program and will showcase a modern color palette as well as fresh interior and exterior design elements

     

Dominion at Oak Forest

136 Unit Multifamily | Houston TX

Play Video

Oct 2021

Acquisition Date

136

Multifamily Units

938

Average Unit SF

4 Years

Target Hold Period

Description

Dominion at Oak Forest is a 136-unit multifamily asset located in the highly desirable Oak Forest neighborhood in central Northwest Houston, Texas. The Oak Forest neighborhood has experienced tremendous growth because it is situated just north of The Heights, an area with rapidly-increasing single home values and commercial redevelopment. The asset consists of 12 two-story garden style residential buildings, 1 club house and a diversified set of community amenities including gated access, resort-style pool, a playground, grill/picnic area, fitness center, and business center.

Location

1001 Pinemont Dr, Houston, TX 77018

Opportunity & Execution

Execution: Value Add 

Deal Source: Relationship based (fully marketed)

  • Leveraged local market knowledge, in-house construction management team and previous success in West Houston to acquire a well located, recently renovated (2019) asset

 

  • The previous owner completed a very deep and comprehensive renovation of all 136 units where the scope included taking the units “down to the studs” which positions the asset very similar to the acquisition of “new construction” below current replacement cost

 

  • Our renovation program is limited to enhancing the common areas as well as other revenue-generating amenities

 

  • We plan to replace existing management with an experienced operator to better manage leasing operations and close the gap between in-place rents and comparable Class A assets

 

  • This asset will provide immediate current yield to balance against the future acquisition of assets that require heavy value-add early in the hold period

Montabella at Oak Forest

178 Unit Multifamily | Houston TX

Play Video

Oct 2021

Acquisition Date

178

Multifamily Units

1,112

Average Unit SF

4 Years

Target Hold Period

Description

Montabella at Oak Forest is a 178-unit multifamily asset located in Oak Forest, an affluent and burgeoning submarket in the path of high-growth in West Houston. Oak Forest offers residents a walkable environment, new dining and entertainment amenities, proximity to Houston’s largest employment hubs, rapidly-increasing single home values and commercial redevelopment. The asset consists of 20 two-story garden style residential buildings, 1 club house and a diversified set of community amenities including gated access, resort-style pool, a playground, grill/picnic area, 2 dog parks, fitness center, and business center.

Location

4000 W 34th Street, Houston, TX 77092

Opportunity & Execution

Execution: Value Add 

Deal Source: Relationship based (fully marketed)

  • Leveraged local market knowledge, in-house construction management team and previous success in West Houston to acquire a well located, recently renovated (2019) asset

 

  • The previous owner completed a very deep and comprehensive renovation on 148 of the 178 units where the scope included taking the units “down to the studs” which positions the asset very similar to the acquisition of “new construction” below current replacement cost

 

  • Our renovation program targets the 30 remaining units in addition to enhancing the common areas other revenue-generating amenities

 

  • We plan to replace existing management with an experienced operator to better manage leasing operations and close the gap between in-place rents and comparable Class A assets

 

  • We believe this asset will provide a hybrid opportunity of immediate current yield and value add upside

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