S2 Capital, a Dallas-based national multifamily investor specializing in value-add properties, has been active on the acquisition front, recently purchasing four communities in Texas and Florida.
In the rapidly growing Dallas metro area, the firm purchased a two-property portfolio—the 356-unit Legends on Lake Highlands in East Dallas and the 320-unit Carrollton Oaks in Carrollton— through its S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.
According to S2 Capital, it plans to spend approximately $5 million per property in renovations over the next two years. All interior units will be updated with stainless steel appliances, hard-surface countertops, undermount sinks, kitchen backsplashes, vinyl flooring, hardware, light fixtures, and ceramic shower tile. In addition, enhanced amenity and curb appeal upgrades will be made.
“Dallas and its surrounding areas are enjoying remarkable demand, and these properties will provide an affordable option in an increasingly expensive area,” said Ryan Everett, vice president of acquisitions. “We are excited to invest in upgrading the units to attract tenants, and we believe our planned improvements, along with our hands-on residential management, asset management, and construction management, will position the property as an attractive asset that can command market rents.”
Built in 1979, Legends on Lake Highlands is a two-story, garden-style community with one- and two-bedroom units. Carrollton Oaks, built in 1981, also is a garden-style community comprised of one- and two-bedroom units. Northmarq’s Lauren Bresky and Lauren Heikenfeld helped secure financing for S2 Capital, and Taylor Snoddy represented the seller in the transaction.
In addition to the two-property portfolio acquisition, S2 Capital has acquired the 266-unit Residences at Preston Park in the Dallas metro through its S2 Multifamily Value-Add Fund 1.
The Plano community, which was built in 1995, features garden- and townhome-style apartments on approximately 15 acres. According to S2 Capital, it plans on spending just over $4 million to make select premium renovations.
“From the start of our discussion on Residences at Preston Park, we have been impressed by the property’s significant value-add opportunity,” said Everett. “We believe our investment will benefit both the local residents and our investors. We are also bullish on West Plano’s apartment market, which is driven by steady occupancy rates and record-breaking demand for the whole Dallas-Fort Worth region.”
Newmark’s Henry Stimler, Bill Weber, and Ari Schwartzbard helped secure financing for S2 Capital, and Brian O’Boyle Jr. represented the seller in the transaction.
Outside of the Lone Star State, the firm has acquired the 359-unit Jupiter Isle Apartments in Jupiter, Florida, also through the S2 Multifamily Value-Add Fund 1.
Built in 1984, this Class B garden-style community features one- and two-bedroom units, multiple swimming pools, and other outdoor amenities. S2 plans to complete over $5 million in renovations over the next two years to enhance common areas and remodel interiors. Improvements will include exterior painting and balcony repairs as well as the renovation of the leasing and fitness centers. Interior upgrades will feature stainless steel appliances, hardware and countertop upgrades, and new floors and ceramic tile showers.
“We are excited to invest in Jupiter Isle and believe the property represents a compelling investment for both the community and our investors,” said Davey Leach, vice president of acquisitions. “[Palm Beach] County as a whole is enjoying growth, but with constrained supply and very limited new construction, the Jupiter submarket, in particular, offers tremendous opportunity to transform an older community into a market-leading option for its growing number of residents.”
Berkadia’s Nathan Stone, Brad Mason, and Guy Griffith helped secure financing for S2 Capital. Jaret Turkell represented the seller in the transaction.