One of North Texas’ biggest apartment buyers is back in the game again after taking a hiatus from local purchases.
S2 Capital has purchased almost 46,000 rental units in the last decade. But two just-completed purchases are its first in the area this year.
“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,” S2 Capital vice president Ryan Everett said in a statement.”These deals transacted at a basis that felt very compelling for our investors in markets we know extremely well.”
S2 Capital acquired Falltree, a 126-unit rental community at 19200 Lyndon B. Johnson Freeway in Mesquite. The property is near Interstate 30 and Town East Mall.
S2 Capital plans to upgrade the community with new interiors, a renovated clubhouse, swimming pools, added balconies and patio enclosures, paint and landscaping.
In Grand Prairie, S2 Capital purchased Silverbrook, a 642-unit property at 2934 Alouette Drive. The investor plans to renovate the apartments with improvements that include a clubhouse, pickleball courts, a dog park and a new swimming pool area.
CBRE Group’s Danny Baker and William Hubbard brokered the property sales, and CBRE’s Harry Krieger secured the financing.
S2 Capital has done about $10 billion in transactions and has properties in states including Texas, Arizona, Florida, Georgia and North Carolina.
In 2022, S2 Capital raised $400 million to buy more properties. Last year, it acquired 14 apartment communities with 4,455 units in North Texas and Houston. The properties were built in the late 1970s and the 1980s.
