Palladius Capital Management – a vertically integrated real estate investment manager with debt and equity investment strategies – announced the acquisition of nine residential real estate assets with a total capitalization of $579 million, such as five multifamily and four student housing communities, totaling over 2,500 units.
Palladius’ acquisition strategy focused on investments in opportunistic and value-added residential real estate assets. And for multifamily investments, Palladius targeted high-growth markets across the country with strong fundamentals, such as positive trends in employment such as job and wage growth, re-urbanization, education, and infrastructure development. And for student housing investments, Palladius targeted universities with high application/enrollment growth positioned to take advantage of flagship university spillover.
Palladius expects to generate favorable risk-adjusted returns for its investment partners by investing in residential real estate assets with these qualifications. And Palladius acquired the portfolio on behalf of a recently closed Palladius-sponsored private real estate investment fund, which raised approximately $112 million in equity primarily in the private wealth channel.
Palladius’ investment strategies, which is focused on creating short- and long-term value for its investors, are informed by decades of investment and property-level operating experience and deep local market knowledge. And the firm’s rapid AUM growth since its inception in July 2021 reflects the evolution of its platform, extensive network of relationships, and compelling value proposition.
KEY QUOTES:
“The successful deployment of this fund speaks to our team’s ability to strategically invest throughout various macroeconomic environments.”
– Marko Velazquez, Senior Managing Director at Palladius Capital Management
“Despite constriction in capital markets activity and transaction volume that sidelined many of our peers, we were able to take advantage of early tailwinds from a trajectory flip in interest rates and leverage our team’s deep knowledge of our markets and residential asset classes to acquire properties at an attractive basis.”
– Manish Shah, Senior Managing Director at Palladius Capital Management
“We are pleased with the outcome in a highly challenging environment. We look forward to the continuation of value creation for our institutional and private wealth investment partners and our community tenants.”
– Nitin Chexal, CEO of Palladius Capital
