S2 Capital, a Dallas-based multifamily investment platform specializing in value-add properties, has acquired a portfolio of 14 apartment communities in Dallas-Fort Worth and Houston through its S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.
The Class B garden-style communities, built between 1979 and 1987, are comprised of 4,455 units. In the Dallas-Fort Worth area, the assets include 800 Link, Huntington Lakes, Lincoln Crossing, and Preston Green in Dallas; Canyon Ridge in Rockwall; Casa Valley in Irving; Cinnamon Park and Preslee in Arlington; Spring Creek in Garland; Springfield in Mesquite; and Summer Meadows in Plano. The other properties include Hidden Lake and Silverado in Houston and Cimarron Parkway in Katy.
“The run-up in mortgage rates for the single-family market has exacerbated a broader affordability issue leaving a lot of people looking to rent as the more affordable option,” said Ryan Everett, vice president of acquisitions at S2. “We are excited about this portfolio because while people begin searching for affordable housing options, we don’t believe that should be associated with an outdated community experience.”
Over the next two years, S2 has plans to upgrade the exteriors and interiors of each asset to enhance the community experience for current and prospective residents. Exterior improvements include repainting, refreshing siding, and upgrading balcony enclosures. Swimming pools, fitness centers, clubhouses, and leasing offices also will be enhanced. In the units, improvements will focus on new flooring, countertops, appliances, kitchen and shower tiling, light fixtures, and hardware.
“The majority of the amenities and features at these properties date back to their original development roughly 40 years ago. Our planned property improvements will increase the supply of quality housing that is essential to sustaining desirable communities and meeting local employer needs, which will benefit both our tenants and investors,” Everett added.
Collectively, debt financing was secured by JLL’s Mark Brandenburg, Lauren Dow, and Michael Cosby and Northmarq’s Lauren Bresky and Loren Heikenfeld. Investment sales were led by JLL’s Roberto Casas, Rob Key, Matthew Lawton, and Dustin Selzer as well as Northmarq’s Taylor Snoddy.
