CrowdStreet: The Mirage Texas State Student Housing

Real estate investment platform CrowdStreet announced an offering for an equity investment in a garden-style student housing asset near Texas State University. 

Offering sponsor Palladius Capital Management acquired the 816-bed student housing facility that will become The Mirage on May 1. The group intends to implement a comprehensive value-adding renovation to all units as well as community amenities and common areas. This is expected to add significant value to a housing asset in an already underserved market. 

Texas State University (TSU) is located in San Marcos, a city halfway between Austin and San Antonio that has seen substantial population growth in recent years. Enrollment at TSU is increasing, with a 14% rise in freshman enrollment for 2022 bringing the total to nearly 40,000 students. 

Growing attendance at the school has far outpaced the student housing supply. The university has 1,006 new on-campus and 60 new off-campus student housing beds in the development pipeline with a demand for nearly 3,500 beds, providing an opportunity to invest in an underserved market. 

The proposed renovation will be conducted during the 2023-2024 academic year and when completed will be one of the premier housing facilities near the university. As of May, the property was already 90% leased at a premium rate.

The Palladius Capital Management-sponsored real estate fund focuses on producing returns through the acquisition, management and disposition of equity interests in multifamily and student housing assets throughout the country. The investment firm seeks cash-flowing assets with high value-add potential that can be acquired at a discount to replacement cost. 

The real estate group boasts a historical track record of achieving a 33.9% net internal rate of return and a 2.4 times net equity multiple over its history. The group’s actively managed 2 million-square-foot portfolio is valued at $500 million. 

The investment window for The Mirage Texas State Student Housing opened on June 28 and the minimum investment amount is set for $25,000.

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Photo courtesy of CrowdStreet