AUSTIN, Texas–(BUSINESS WIRE)–Palladius Capital Management, a vertically-integrated real estate investment manager focused on pursuing multifamily, student housing, hospitality and select thematic investment strategies, today announced the acquisition of Citizen House Kyle, a 342-unit Class A multifamily asset in the high-growth South Austin suburb of Kyle, TX.
Located along the I-35 Innovation Corridor, Citizen House Kyle was completed in 2022 and is part of the larger Dry River District – a 65-acre mixed-use community being developed by Endeavor that includes multifamily, medical and retail space. The property offers luxury one- and two-bedroom units and an array of state-of-the-art amenities, including a resort-style pool, resident clubhouse, high-tech fitness center, outdoor lounge, and co-working space.
“This transaction represents a win-win scenario for Palladius and Endeavor,” said Nitin Chexal, CEO of Palladius. “Endeavor was able to efficiently monetize its investment in a pre-stabilized property and Palladius was able to acquire a high-end apartment community in a market that’s experiencing rapid population growth. Leasing up pre-stabilized Class A multifamily assets is a strategy that we’re focused on expanding, and we look forward to establishing similar partnerships with other merchant builders in our target markets.”
Chexal and Director of Investments Nick Maupin, who led the Citizen House Kyle transaction, as well as the rest of the Palladius team have significant experience investing along the Innovation Corridor, having deployed more than $350 million across value-add and core-plus rental housing in this region since 2014. The firm believes the explosive growth from the corridor’s main metros will continue to spill over into surrounding areas like Kyle, which has seen its population increase over 85 percent since 2010. Further demonstrating the area’s strong fundamentals, Hays County – where Kyle is located – was ranked as the second fastest growing large county in the country according to U.S. Census Bureau data.
G. Nelson Crowe III, Principal at Endeavor Real Estate Group, commented, “Citizen House Kyle is an integral part of our mixed-use development, Dry River District, serving the Kyle community. The Palladius team, specifically Nitin and Nick, were a pleasure to work with on this transaction. From deal awarding to closing, they never wavered even in a challenging debt market and provided flawless execution. We look forward to continuing to develop and deliver Citizen House communities across the Austin MSA and look forward to working with Palladius on future opportunities.”
The Innovation Corridor’s growing population has led to increased demand for high-quality rental housing like Citizen House Kyle as the prices for single-family homes in the area continue to rise. Citizen House Kyle is located 15 minutes from Austin’s central business district and 15 minutes from San Marcos – two major employment centers that are home to companies like Amazon, Tesla, Seton Medical, HBO, Best Buy and H-E-B. The property is within walking distance of over 300,000 square feet of retail space, including a Starbucks, Home Depot, Costco (under construction), a variety of dining options, and Evo Entertainment, a 75,000 square foot entertainment center with eleven screens, a 14-lane bowling alley, and an arcade.
About Palladius Capital Management
Palladius is a tactical 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 technology veterans, Palladius pursues value-add and core-plus strategies targeting multifamily, student housing, hospitality and other thematic investment strategies through its affiliates. Based in Austin, TX, Palladius is focused on building a highly progressive platform that promotes diversity and inclusion. To learn more, visit www.palladius.com.