Source: S2 Capital
DALLAS, TX - S2 Capital announced it has acquired a 14-property portfolio across Dallas-Fort Worth and Houston. The portfolio totals 4,455 units across 14 assets built in 1979-1987. S2, a national multifamily investor with more than $10 billion in transaction volume, is making this investment from its S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.
With this transaction, S2 overtakes Blackstone as the #1 most active buyer of multifamily in Dallas-Fort Worth for the past five years according to Real Capital Analytics.
Over the next two years, S2 plans to renovate the exterior and interior of each asset in order to offer current and prospective residents an enhanced community experience. The exterior enhancements will be tailored around improved swimming pools, fitness centers, clubhouses, leasing offices, repainting, refreshing siding, and upgrading balcony enclosures. Interior enhancements will focus on new flooring, countertops, appliance packages, kitchen tile, shower tile, light fixtures, and hardware.
"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. 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because while people begin searching for affordable housing options, we don't believe that should be associated with an outdated community experience," said Ryan Everett, VP of Acquisitions at S2. "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," he added.