Palladius Capital Management has its sights set on originating $300 million of new commercial real estate debt deals in the US to capitalize on what the Austin-based manager perceives as a lull in bank and non-bank lending activity.
The Austin, Texas-based real estate investment manager is targeting financing opportunities ranging from $2 million to $40 million across multifamily, student housing, hospitality, industrial, single-family housing and select thematic investments, according to its September 12 strategy outline.
The firm is looking at construction and transitional commercial real estate debt investments as part of its updated focus and plans to hold all new deals on its balance sheet. Palladius said it is focused on originating, acquiring and managing first mortgages, B-notes, mezzanine debt and preferred equity.
As part of the enhanced debt platform plans, Palladius is also seeking what it described as high-quality borrowers with sound business plans that require flexible financing solutions for its ideal sponsor set.
“Ramping up our lending platform alongside our equity activities comes at a time when many bank and non-bank lenders are pausing activities due to rising interest rates and prolonged economic uncertainty,” said Nitin Chexal, CEO of Palladius.
The debt focus arrives one month after Palladius launched its first debt fund – the Palladius Income Fund – to focus on senior and bridge pans as well as preferred equity opportunities. The strategy was structured to be evergreen as a means of reopening to new investors if more capital is ever needed.
Palladius is bulking its ranks alongside its debt ambitions and currently has plans to hire more originators, asset managers and a head of capital markets to tack onto Chexal and his leadership team’s capabilities. In April this year, Palladius hired Nicholas Maupin from Freddie Mac’s multifamily division to work as its director of investments responsible for origination, underwriting and portfolio management.