The Hudson
S2 Capital acquired The Hudson in October 2015. The Hudson is a 660-unit community in Arlington, TX.
Business Plan & Execution
The Hudson is a two-story garden style multifamily community originally built in 1984.
The Hudson served as S2’s 12th value add deal, furthering the firm’s economies of scale in the Dallas-Fort Worth Market.
S2 originally acquired the property in October 2015 and budgeted to spend approximately $12,500 per unit in renovation costs.
S2 implemented numerous exterior improvements, including new paint, improved landscaping, Trex composite patio railing, brand-new interiors in the clubhouse and the resident lounge, and a redesigned pool area.
S2 realized successful rent increases of 23%, from $733 to $905 at the time of sale. Furthermore, S2 believed the property maintained unrealized value, thus recapitalized the deal in September of 2017 and once again in December of 2020.
Before
After
Key Metrics
Capitalization
$59,214,963
Total Equity
$13,114,963
Renovation Budget
$8,224,465
Year Built
1984
Total Units
660
Average Sqft/Unit
841 sqft
Units Renovated
58%
Starting Rent
$733
Ending Rent
$905
Rent Increase
$172
Hold Period
23 months
