The Dryden

S2 Capital acquired Dryden apartments in August 2016. Dryden is a 188-unit community located in Arlington, TX.

Formerly named River Oaks Apartments, this two and three-story garden style multifamily community was originally constructed in 1983.

The thesis for this investment was driven primarily by our ability to acquire a well-located asset in a high growth submarket with additional upside through renovations and our vertically integrated management.

S2 budgeted to spend approximately $15K p/unit in renovation costs to upgrade the interior of units to include new countertops, flooring, fixtures, paint, and appliances, while also conducting an exterior renovation to completely revamp the complex.

After renovating 66% of the total units and increasing average rents 23% from $731 to $900, S2 decided to capitalize on the growth created and sold the property.

In total, our LPs received a 33.8% IRR and a 1.88x MOIC.

Boat House & Shore House

S2 Capital acquired Boat House and Shore House in June 2017. Boat House and Shore House are two adjacent communities totaling 1103 units in Jacksonville, FL.

Boat House and Shore House are adjacent two-story garden style multifamily communities originally built in 1972/1973.

S2 amassed a significant presence in Florida, acquiring 5,000+ total units in Jacksonville and Orlando. Boat House and Shore House served as a continuation of S2’s push into the diverse and rapidly expanding Florida market.

S2 originally acquired the property in June 2017 and budgeted to spend approximately $12,000 per unit in renovation costs. S2 completely revamped the exteriors, implementing a new paint scheme, landscaping, and facades in addition to interior renovations.

The Jacksonville labor force grew nearly three times faster than the national average resulting in organic rent growth.

S2 realized successful 22% rent increases from $572 to $700 at the time of sale. Furthermore, S2 believed the property maintained unrealized value, thus recapitalizing the deal in January of 2019.  

The Hangar

S2 Capital acquired The Hangar in May 2017. The Hangar is a 268-unit community in Cedar Hill, TX.

Previously known as High Point Village, this two-story garden multifamily community was originally constructed in 1978.

The thesis for this investment was an opportunity to purchase a well-located, poorly managed, underperforming property at an attractive price per unit.

With help from S2’s affiliate, S2 Construction, S2 spent about $17k per unit renovating the property and converting it from a Class “C” to Class “B” asset.

Interior renovations included all new flooring, countertops, appliances, paint, and fixtures.

Exterior renovations were focused on existing amenities, adding an outdoor living area, dog park, and rebranding the property.

S2 originally acquired the project at only 40% occupancy but believed with help from its vertically integrated management company, they could quickly stabilize and increase NOI.

By time of sale, The Hangar was at 97% occupancy and S2 had successfully increased rents 44% from $705 to $1,018 while renovating 87% of units at the property.