PREF I targets investments in multifamily and student housing properties across the country
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 launch of Palladius Real Estate Fund I (“PREF I”) on RealtyMogul, a leading real estate technology platform. The offering provides accredited investors with the opportunity to invest alongside a sophisticated, well-capitalized and operations-oriented investment manager.
PREF I is a private real estate investment fund that targets a $100 million capital raise and is focused on producing attractive risk-adjusted returns through the acquisition, management and disposition of equity interests in multifamily and student housing assets across the country. Since its launch in October 2021, PREF I has acquired three value-add multifamily properties and one value-add student housing asset totaling 1,178 units. With a 234-unit multifamily property under contract and slated to close in late March, PREF I’s portfolio will soon include five assets with a total capitalization of $285 million. The fund’s target internal rate of return is 17.5% over a four- to six-year hold period.
“In forming Palladius, our plan was always to create and scale an enterprise that is capable of leveling the playing field to create value for both institutions and individuals,” said Nitin Chexal, CEO of Palladius. “Investments in private equity funds like ours had traditionally been reserved for institutions. However, in partnering with an industry-leading real estate technology platform like RealtyMogul we can provide accredited investors access to our fund, offering them the chance to participate in the potential upside that comes with passively investing in a professionally managed fund focused on a historically stable, inflation-hedging asset class.”
Current investors in PREF I represent a diverse mix of institutions, high-net-worth individuals and family offices. Through this offering with RealtyMogul, new investors have an opportunity to deploy capital into an institutional-quality portfolio of cash-flowing residential properties that have been acquired at a discount to replacement cost and participate in Palladius’ growing acquisition pipeline. Moreover, investors gain access an experienced team of tech-savvy real estate investors who have a compelling track record of value creation on realized investments. Together, these professionals have acquired, managed and operated more than $8 billion of assets throughout their careers.
“We are pleased that Palladius Capital Management is listing their fund on the RealtyMogul Platform,” said Chris Fraley, Chief Investment Officer at RealtyMogul. “Palladius’s team has 50+ years of combined real estate investing experience and a track record of delivering 33.8% net IRR on realized investments (1) across $915 million of acquisitions. Our mission is to empower investors to build a real estate portfolio that is right for them, and this opportunity gives RealtyMogul Members exposure to targeted markets, like Houston, via an experienced operator.”
In leveraging RealtyMogul’s platform, Palladius is advancing its efforts to contribute to the democratization of real estate by providing individuals with access to investment opportunities that were previously unavailable to them. Conversely, having historically focused on single-asset offerings, RealtyMogul is able to offer its more than 220,000 members access to a diversified private investment fund with considerable upside potential (2). This mutually beneficial arrangement is the latest example of Palladius’ innovative approach to scaling its platform. More in line with the financing strategy employed by technology companies, Palladius’s real estate investment managers raised a Series A round to capitalize its formation and rapid growth.
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