Palladius pursues debt investments by originating senior secured loans, mezzanine loans and preferred equity investments for the construction, acquisition, and refinancing of commercial real estate, and by acquiring non-performing loans and preferred equity investments. As a lender, Palladius is a valued partner to both institutional sponsors and leading independent developers, known for speed, flexibility, and certainty of execution in complex situations.
We invest our capital in the range of $2-$25M per loan transaction, and our investment terms range from 6 to 36 months. We are committed to customized solutions that help our clients execute business plans and short/long-term goals.
We understand that speed can be the difference between making or breaking an opportunity. Palladius is geared to move quickly to help our borrowers realize on their opportunities. This includes pre-funding analysis, due diligence, and post-funding loan servicing, draw administration, and asset management.
Delivering certainty of execution and building trust with borrowers are paramount to everything we do. It means listening, understanding, and helping borrowers think through the risks and opportunities associated with each investment, and then being there for them when it comes time to realize on the opportunity. Real estate investments can sometimes be complicated, and we want borrowers to think of our team as an extension of their own to solve problems.
Our underwriting, due diligence, loan servicing, draw administration, and asset management teams are internal and captive to Palladius. We don’t outsource these critical functions. Palladius’ interests are always aligned with the success of our clients, and every person at Palladius is incentivized to advance our goal of being our clients’ trusted partners.
We invest across the US, in both larger and smaller metros. Our team has decades of experience and geographic knowledge, which allows us to move quickly to underwrite lending opportunities alongside clients and devise creative solutions based upon historic and prospective macro and microeconomic changes to the region.
We invest in both new construction and existing assets, including entitled land for development in special situations. While the bulk of our portfolio will always be invested in multifamily and larger-scale residential/housing, we also understand and invest in all major commercial real estate asset classes, including retail, office, industrial, self-storage, hospitality, student, and seniors’ housing.
We invest throughout the United States, with experienced sponsors that have proven track records, unique opportunities, and rigorously demonstrated business plans.
Palladius is a balance sheet lender. This means we only invest our own capital and are accountable to our investment decisions. We always seek to be aligned with our clients and the success of each investment. We work earnestly to gear both our pre- and post-funding processes to help our clients translate and accelerate their opportunities into successes.
Upon completion of the loan submission, the opportunity will be reviewed by the Palladius team, usually with further Q&A. Palladius will issue a non-binding Letter of Intent upon the successful conclusion of this phase, outlining the goals and expectations for the proposed investment. This phase can move quickly.
Upon mutual execution of a non-binding LOI, we will receive a deposit for due diligence and third-party costs, such as appraisals. Deposits are designed to cover costs, not generate profits. The time frames for this phase can vary materially depending upon appraiser requirements, borrower responsiveness, inspection requirements, and transaction complexity. Generally, we seek to complete this phase in 10 to 20 days.
Once Due Diligence is completed, final investment recommendations will be sent to our loan committee for review and approval. Our LC reviews transactions in advance of final review, on a pre-screen basis, to help inform the parties around key factors that will be critical for approval. This Approval phase moves quickly.
Upon successful completion of Loan Approval, Palladius will close and fund the investment pursuant to its document, title, escrow, insurance, and legal requirements.
Palladius provided a short-term bridge loan to a fully entitled mixed-use (multifamily & retail) land site in Austin, TX. The site has core adjacency to multiple transformative development projects currently under construction. The borrower is an experienced ownership group and the site is covered with short-term industrial tenants to provide cash-flow pre-development.
Palladius provided a preferred equity investment with a detachment point below $150K/unit for the construction of 336 multifamily units in a growing submarket of NW Houston and adjacency to a Walmart Supercenter. The developer is an experienced owner/operator of multifamily and retail in the Houston MSA.
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