Real Estate Equity Investment Strategy
What We Do
Palladius is an innovative real estate investment management organization focused on investing capital on behalf of institutional investors. Our goal is to create short and long-term value for our investors through hands-on operational expertise of the assets we acquire.
How We Do It
Tactically
Contrarian
Data
Driven
Operational
Expertise
Vertically Integrated Platform
Vertically Integrated Platform
Proprietary Investment Process
We utilize a proprietary database of macro and
submarket data to identify where and when capital should be deployed
In-House Construction Management
We control capital expenditure deployment into all
value-add and property improvement program
projects
Hands-On Asset Management
Recent Acquisitions
The Chloe Leander
276 Unit Multifamily | Leander TX (Austin MSA)
August 2023
Acquisition Date
276
Multifamily Units
892
5 Years
Target Hold Period
Description
The Chloe Leander, completed in 2023, stands as a pinnacle of luxury living in Leander, Texas. This 276-unit apartment community, strategically located in the heart of Leander, offers residents unparalleled convenience with easy access to local attractions, dining establishments, shopping centers, and recreational spots. Closely affiliated with The Chloe Kyle, The Chloe Leander exemplifies refined taste and sophistication. Boasting Studio, One-, Two-, and Three-Bedroom Apartment Homes, this community caters to a diverse range of lifestyles, making it an ideal choice for individuals and families alike. The Chloe Leander prides itself on setting a standard of excellence for both current and future residents. The resort-inspired swimming pool provides a luxurious escape for relaxation and recreation. The cutting-edge fitness center, open 24/7, ensures that residents can maintain an active and healthy lifestyle at their convenience. Recognizing the evolving work landscape, co-working lounges are thoughtfully designed to cater to the needs of the rapidly growing hybrid work environment, providing residents with flexible and collaborative spaces.
Location
348 Main St, Leander, TX 78641
Opportunity & Execution
Execution: Class-A Core Multifamily
Deal Source: Off-Market
- Leveraging our local market knowledge and relationship with the merchant builder with a develop-and-sell business strategy, The Chloe Leander’s proximity to Austin, one of the fastest-growing cities in the United States, contributes to its appeal. Austin’s dynamic job market and cultural attractions make Leander an attractive suburban option.
- The Chloe Leander adds an interesting dynamic to the path of growth, located in an area of low rent-to-income ratio, access to multiple employment hubs and highly skilled / educated employees, is a short distance to walkable retail at Northline Leander and Leander Springs, as well as being in a top-rated school district (Leander ISD).
- Austin has rapidly transformed into an innovation hub, with its overall VC funding surging 3.5x since 2017. Major employers such as Tesla, Samsung, Meta, Oracle, Indeed, Apple, Google, and Amazon have contributed to this growth. Additionally, the easily accessible transit into Austin from across the street, named Capital Metro’s Leander Station, further enhances the city’s connectivity.
- This Class-A Core Multifamily community is a fresh addition to the portfolio and continues to enhance our dedication and focus on dislocated A-class product along the I-35 corridor that links Dallas, Austin, and San Antonio.
- 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.
The Mirage ( Texas State University )
816 Bed Student housing | San Marcos TX
May 2023
Acquisition Date
288 / 816
Units / Beds
1095
Avg SqFt.
6 Years
Target Hold Period
Description
Built in 2001, The Mirage is a 288-unit, 816-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 Mirage, closely related to The Oasis, 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 brand-new fitness center, (2) swimming pools, (2) basketball and volleyball courts, Disc Golf Course, (2) large dog parks, and business center with student study lounge.
Location
1610 N Interstate 35, San Marcos, TX 78666
Opportunity & Execution
Execution: Value Add
Deal Source: Relationship Based (Fully Marketed)
- Based on local market knowledge, experience in the San Marcos submarket, continued enrollment growth for (TXST), and previous success with student housing assets along the I-35 corridor.
- The Seller previously upgraded the property in 2017 and repaired most deferred maintenance. Our plan is to modernize these interiors along with amenities.
- Our in-house construction management team is targeting 100% interior unit renovations to be completed in the first year of the hold.
- Like The Oasis, rebranding as “The Mirage” will accompany the renovation program, create a new buzz around Texas State University, and provide a modernized housing opportunity for students at TXST.
The Chloe Kyle
342 Unit Multifamily | Kyle, TX (Austin MSA)
Sep 2022
Acquisition Date
342
Multifamily Units
948
Avg SqFt.
3 Years
Target Hold Period
Description
The Chloe Kyle 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
910
Avg SqFt.
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 Oasis ( Texas State University )
672 Bed Student housing | San Marcos TX
Feb 2022
Acquisition Date
240 / 672
Units / Beds
1067
Avg SqFt.
4 Years
Target Hold Period
Description
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 Beverly at Shadow Lake
624 Unit Multifamily | Houston TX
Dec 2021
Acquisition Date
624
Multifamily Units
874
Avg SqFt.
4 Years
Target Hold Period
Description
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
Oct 2021
Acquisition Date
136
Multifamily Units
938
Avg SqFt.
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
Avg SqFt.
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