Dallas-based investor S2 Capital has experienced its most successful year, acquiring more than 10,000 multifamily units in 2021 for $1.9 billion.
Its most recent acquisitions to end the year include the 350-unit Allure community in Charlotte, North Carolina; Woods Edge Apartments and Bridges at Southpoint with 456 units in Durham, North Carolina; and the 275-unit Ramble and Rose in Fort Worth, Texas.
S2 Capital plans to spend more than $3.8 million at the Allure community, including a full renovation of the unit interiors and the implementation of smart apartment technologies across the property as a resident amenity. Newmark’s John Heimburger represented the seller in the transaction, which closed Dec. 14.
More than $6.5 million of interior and exterior renovations are planned for the Durham communities, which closed Dec. 15. Newmark also represented the seller.
IPA’s Dallas office represented the seller of the Fort Worth community, which closed Dec. 14.
In addition to the record acquisitions in 2021, S2 Capital also capitalized on an opportunity in the marketplace, selling 23 properties with 8,496 unit for $1.2 billion. The firm will receive an average gross internal rate of return of 64% with an average gross multiple on invested capital of 3.47. The disposition’s assets were located in Dallas; Houston; Jacksonville and Orlando, Florida; and Phoenix.
“As we end our best year yet, Dallas-Fort Worth remains S2’s top investment market,” said S2 Capital CEO Scott Everett. “The Dallas-Fort Worth area is projected to grow by almost 18% by 2029, and North Texas even led all metros in the states in year-to-date multifamily investment, yielding $16 billion in sales and comprising 9% of the U.S. total. As we look ahead to the new year, Charlotte and Raleigh-Durham will also continue to be two of our core focus markets. Average sales prices for the Charlotte multifamily market have been trending upward for several years and came in at $153,000 per unit [in 2020]. I couldn’t be prouder of the S2 team for an exceptional 2021 and look forward to continuing the expansion of our portfolio next year.”
