Multifamily investment platform S2 Capital added nearly 800 units to its portfolio with the purchase of two properties near its Dallas homebase.
S2 acquired Falltree, a 126-unit property located in Mesquite, Texas, which currently ranks third for rent growth among Dallas-Fort Worth submarkets.
The property offers convenient access to two interstates and three major retail destinations. S2 plans to upgrade all Falltree unites with stainless steel appliances, granite countertops and contemporary fixtures, among other improvements. The clubhouse, swimming pools and other exterior amenities will also be enhanced.
S2’s second acquisition was Silverbrook, a 642-unit property in Grand Prairie, Texas, located near a 172-acre entertainment district called Epic Center as well as the Dallas-Fort Worth airport.
S2 also plans to renovate all units and make exterior amenity upgrades such as a revamped community clubhouse, a tennis court repurposed into pickleball courts and a dog park.
“These deals mark the first acquisitions for S2 in 2023 as we have remained very patient with our capital as pricing and capital markets continue to deteriorate. These deals transacted at a basis that felt very compelling for our investors in markets we know extremely well,” said Ryan Everett, vice president of acquisitions at S2. He noted that both new properties are located near other multifamily assets owned by the firm, in line with its strategy of leveraging geographical proximity to achieve economies of economies and greater profitability.
Terms of the transactions were not disclosed. CBRE‘s Danny Baker and William Hubbard represented the sellers in these transactions, while CBRE’s Harry Krieger worked S2 to secure financing.
S2 Capital recently added Mark Halford as vice president, special situations, to capitalize on opportunistic and distressed acquisitions — a key part of its investment strategy. The firm is focused on the U.S. Sunbelt and has acquired over 46,000 units.