Palladius Capital Management's Residential Housing Investments Along the Austin-San Antonio I-35 Corridor Exceeds $170M Over the Last 12 months with the Acquisition of The Luxx
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 the acquisition of The Luxx, bringing the firm's investment activity in residential housing along the Austin-San Antonio I-35 Corridor to over $170M over the last 12 months. Palladius has extensive experience investing along the I-35 Corridor, having acquired more than $550M of real estate in the area since 2014.
The Luxx is a 694-bed, 220-unit, highly amenitized student housing community ideally located approximately one mile from the academic center of The University of Texas at San Antonio ("UTSA"). The property was built in 2014 and offers fully furnished units with bed/bath parity, in-unit washer-dryers, and walk-in closets. It also boasts top-of-the-line amenities, including a Vegas-style pool, study spaces, a volleyball court, a fitness center, a dog park, and outdoor grills. The property is located just 10 minutes from UTSA and has a dedicated stop along one of UTSA's shuttle routes. Additionally, The Luxx offers easy access to downtown San Antonio via I-10 and Austin via I-35.
Palladius' capital improvement plans for The Luxx include performing light unit interior renovations as well as a more comprehensive renovation program on the community's common areas. Unit interior renovations will include new stainless-steel appliances and various bathroom improvements while common area upgrades will focus on the fitness center, pool, dog park, courtyard, and clubhouse.
"We are excited to acquire such an exceptionally well-located asset in a market we know well at an attractive basis and look forward to leveraging our operating expertise to add incremental value to the property and provide residents with an exceptional living experience," said Palladius CEO Nitin Chexal. "We believe strongly in the long-term outlook for both the student housing asset class, especially at strong public universities in high population growth states like Texas, and for the I-35 Innovation Corridor, in which we have been strategically deploying capital for the last decade. We look forward to expanding our relationships with new capital partners to advance our student housing strategy."
UTSA has seen strong enrollment growth of approximately 22% over the last ten years and published a strategic plan indicating its desire to expand total enrollment to 45,000 students by 2028. This would reflect an increase of more than 10,000 students compared to the 23/24 academic year total enrollment, which should further increase demand for the type of high-quality student housing that The Luxx offers.
"The Luxx is both exemplary of the strong fundamentals we look for in student housing assets and located in a market where we've been highly active over the last two years, acquiring over 2,000 beds," said Jaime Hinojosa, Senior Managing Director and Head of Asset Management at Palladius. "Ideally located just off UTSA's campus, the asset has enjoyed strong occupancy and serves a campus population poised for explosive growth, which we believe will further drive demand for high-quality housing in the coming years."
In addition to its equity investments, Palladius' debt platform has been highly active having lent over $90M over the last 12 months to assets located along the I-35 corridor. The firm's debt activity along the I-35 Corridor includes multifamily, industrial, hospitality, and retail properties.
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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