The Luxx boasts top-of-the-line amenities for its student renters. The Luxx boasts top-of-the-line amenities for its student renters.

Palladius Capital Management is bullish on residential housing investments along the Interstate 35 Austin-San Antonio Corridor.

Over the past 12 months, the Austin-based vertically integrated real estate investment manager has invested over $170 million in the area, including the recent acquisition of The Luxx, a student housing community. The firm has extensive experience investing along the corridor, having acquired over $550 million of real estate since 2014.

The transaction also expands Palladius’ student housing activity.

The 694-bed, 220-unit Luxx serves students at The University of Texas at San Antonio, which has seen strong enrollment growth over the last 10 years. The community is 10 minutes from the campus and offers easy access to downtown San Antonio and Austin.

“We are excited to acquire such an exceptionally well-located asset in a market we know well at an attractive basis and look forward to leveraging our operating expertise to add incremental value to the property and provide residents with an exceptional living experience,” said CEO Nitin Chexal. “We believe strongly in the long-term outlook for both the student housing asset class, especially at strong public universities in high-population growth states like Texas, and for the I-35 Innovation Corridor, in which we have been strategically deploying capital for the last decade. We look forward to expanding our relationships with new capital partners to advance our student housing strategy.”

Built in 2014, The Luxx offers fully furnished units with in-unit washers and dryers as well as walk-in closets. Amenities include a resort-style pool, study spaces, a volleyball court, a fitness center, a dog park, and outdoor grills. According to Palladius, its capital improvement plan calls for light unit interior renovations, such as new stainless steel appliances and bathroom improvements, as well as more substantial upgrades to the community’s common areas. The common area improvements will focus on the fitness center, the pool, the dog park, the courtyard, and the clubhouse.

“The Luxx is both exemplary of the strong fundamentals we look for in student housing assets and located in a market where we’ve been highly active over the last two years, acquiring over 2,000 beds,” said Jaime Hinojosa, senior managing director and head of asset management. “Ideally located just off UTSA’s campus, the asset has enjoyed strong occupancy and serves a campus population poised for explosive growth, which we believe will further drive demand for high-quality housing in the coming years.”