S2 Capital
S2 Capital Real Estate Investing
S2 Capital has acquired a five-property, 1,768-unit distressed portfolio with communities in the Dallas, Knoxville and Nashville, Tenn., markets. The transaction was sourced off-market and focused on properties that were facing foreclosure.
The firm also welcomes one new Managing Director
Dallas, TX, January 7, 2025 – S2 Capital (“S2”), a national vertically integrated multifamily investment manager, today announced the acquisition of a distressed multifamily portfolio consisting of five properties facing foreclosure in Dallas, TX, and Nashville and Knoxville, TN. S2 invested $60 million of rescue capital in a new joint venture with the existing Limited Partner through a structured preferred equity investment and secured a new 5-year $170 million senior loan through ACORE Capital. S2 will take over as the general partner with full operational control across property, asset, and construction management plus major decision rights to protect the preferred equity investment. The transaction was sourced off-market.
The five properties are located in markets with growing demand for multifamily housing and limited new supply
Ryan Everett, Managing Director, Head of Acquisitions of S2 Capital, said, “This transaction is a great representation of how S2 is taking advantage of targeted distress in today’s market. Our vertically integrated operating platform, in tandem with our discretionary capital, positioned us as the preferred partner to step in as the new GP and programmatically address the in place operating issues through the implementation of a new business plan.
“This investment allows us to expand our geographic footprint to Tennessee, where we have planned to invest in the Nashville and Knoxville markets for several years. Our internal data analytics platform projects Southeast Nashville to be a top quartile submarket for investment, given the continued year-over-year demand growth of 11% while supply and permits have plummeted by 80% to less than 2.5% of inventory, coupled with expected strong household formation and in-migration.”
About S2
Founded in 2012, S2 is a Dallas-based multifamily investment platform specializing in value add and core-plus investments. With approximately $11 billion in transaction volume, S2 has acquired over 49,000 units through 145 acquisitions across high-growth domestic markets. S2 is currently targeting opportunities in Texas, Arizona, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia, where job and population growth is expected to outpace the national average and contribute to significant renter demand. S2 is a vertically integrated multifamily investment platform with various commingled value-add, closed-end vehicles and one core-plus, open-ended vehicle with skilled teams in acquisitions, construction, operations, asset management, and capital formation working closely together to execute the firm’s business plan. For more information, visit www.s2cp.com.
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