Recent Acquisitions
Dominion at Oak Forest
136 Unit Multifamily | Houston TX
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
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
The Ranch at Shadow Lake
624 Unit Multifamily | Houston TX
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
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
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