CBRE Investment Management Closes $60 Million Mortgage Loan for 342-Unit Multifamily Community Outside Austin
September 23, 2022
A fund sponsored by CBRE Investment Management closed on a $60 million mortgage loan to finance Palladius Capital Management’s acquisition of the Citizen House Kyle apartment community. The floating-rate loan has an initial term of two years and can extend up to three years.
Citizen House Kyle is a newly constructed, Class A apartment complex located at 3400 Kyle Crossing in Kyle, Texas, and includes 342 one- and two-bedroom units that feature stainless steel appliances, granite countertops, nine-foot ceilings, full-size washers/dryers, patios/balconies and walk-in closets in select units. Residents also have access to various community amenities including a resort-style pool, clubhouse, fitness center, playground, dog park, picnic and grilling areas.
“This transaction offered the opportunity to work with an experienced sponsor and lend on a recently delivered, well-amenitized multifamily asset in one of the nation’s fastest growing counties,” said Michelle Liu, Managing Director for CBRE Investment Management. “Citizen House has exhibited robust leasing activity since it was delivered in early 2022 and is expected to reach stabilized occupancy within a few months. We believe that the sponsor’s strategy for effective property management, coupled with the strong demand for high-quality, modern residential space, will ensure that this asset remains a top choice for tenants for the long term.”
Tony Stein and B.K. Newsom of CBRE’s Debt & Structured Finance team arranged the loan on behalf of the sponsor.
Nitin Chexal, CEO of Palladius Capital Management, commented: “The CBRE IM team, led by Michelle Liu, provided fantastic execution on this pre-stabilized, Class A acquisition. We look forward to working together with them on future acquisitions."
Citizen House Kyle is well-located within the Dry River District, a 65-acre mixed-use development consisting of residential, medical and hotel properties and over 300,000 square feet of retail space. The property is also located conveniently close to I-35, placing residents within a 30-minute drive of Downtown Austin’s central business district.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $146.9 billion in assets under management* as of June 30, 2022, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.