Palladius Capital Management Sells Austin-Area Student Housing Property, Doubling NOI in 2.5 Years
July 22 2024 - 8:03AM
Business Wire
Asset acquired in Q1 2022 and sold in Q2
2024
Palladius Capital Management (“Palladius”), a
vertically-integrated real estate investment manager focused on
pursuing multifamily, student housing, hospitality, and select
thematic investment strategies, today announced it completed the
sale of The Oasis, a 672-bed student housing property located in
the Austin, TX suburb of San Marcos. Palladius purchased The Oasis
in Q1 2022 and sold the asset in Q2 2024.
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The Oasis (Photo: Business Wire)
“We are pleased with the outcome of this transaction,” said
Nitin Chexal, CEO of Palladius. “Our team has extensive operating
experience with student housing, which we utilized to double the
net operating income (“NOI”) during our hold period. We continue to
have high conviction in our investment thesis for student housing.
We utilize a proprietary data framework to identify specific
markets / assets to pursue in conjunction with our proven operating
platform to drive the operating performance of both core plus and
value-add assets. Our current pipeline, which includes assets in
contract, is extensive, and we look forward to expanding our
network of capital partners. We believe our student housing track
record demonstrates our ability to replicate successful outcomes
even in more challenging macroenvironments.”
The Oasis, which is 99.3% occupied and 100% pre-leased for the
2024/2025 academic year, is located 30 minutes away from downtown
Austin and two miles from the Texas State University campus, which
is benefiting from growing student enrollment. Shortly after
acquiring the property, Palladius commenced a capital improvement
plan to unlock embedded value and enhance the resident experience.
All 240 units at The Oasis were renovated and improvements were
made to the property’s common areas and exteriors, helping to drive
strong rent growth. These improvements, alongside an extensive
marketing and re-branding program and enhanced resident life
programming, and the market’s strong fundamentals, made The Oasis a
highly attractive acquisition target.
“The price we were able to command for The Oasis demonstrates
the significant value we produced over the short hold period,” said
Jaime Hinojosa, Senior Managing Director and Head of Asset
Management at Palladius. “We have numerous operating and asset
management techniques that we believe make this type of success
repeatable and scalable in all market environments and cycles.”
Chris Epp of Walker & Dunlop represented Palladius in the
disposition of The Oasis.
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. 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 through its
non-traded REIT, Palladius Income Fund. Based in Austin, TX,
Palladius manages and operates approximately $800 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.
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Media ICRPalladius@icrinc.com