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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