The Muse

S2 Capital acquired The Muse in March 2017. The Muse is an 804-unit community located in Dallas, TX.

Formerly named Tierra Linda, this one, two and three-story garden style multifamily communities was originally constructed in 1969.

This project represented a continuation of S2’s “deep value-add strategy”, which involves identifying physically and operationally distressed properties that are good candidates for rent increases in well-located markets that S2 has extensive knowledge of.

The thesis for this investment was driven by an absentee owner, deferred maintenance, lack of reinvestment, reasonable purchase price and strong location.

S2 budgeted just over $11k p/unit in renovation costs that resulted in amenities and finishes with higher quality than competing properties in the submarket.

S2 successfully increased rents by 42% from $685 to $973 at the time of sale and surpassed other income projections related to the amenities package implemented.

The Landing at East Mil

S2 Capital acquired The Landing at East Mil in November 2018. The Landing is a 360-unit community in Orlando, FL.

Formerly named Waterview, this two and three-story garden style multifamily community was originally constructed in 1988.

In Q3 2018, S2 Capital began the acquisition of 2,400+ units in the high-growth southwest submarket of Orlando. This 1.5-mile radius of the submarket was strategically rebranded as “East Mil” in which Waterview became a part of and named The Landing at East Mil.

The thesis for the investment was driven primarily by our ability to acquire an off-market asset in a high growth submarket coupled with the expiration of the LURA (Land Use Restriction Agreement). The LURA capped rents at $700, however, expired upon our acquisition of the asset.

S2 budgeted to spend approximately $13K p/unit in renovation costs, converting the property from a “Class C” to “Class B” apartment project.

S2 successfully increased rents 36% from $719 to $979 at the time of sale. We were able to push rents $260 while only renovating 35% of the units due to the robust growth from renewals and long-term tenants that chose to stay in their unrenovated units.

This allowed us to save $1.5MM of the $4.75MM total construction budget and further boost returns for the investors.

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.

The Hudson

S2 Capital acquired The Hudson in October 2015. The Hudson is a 660-unit community in Arlington, TX.

The Hudson is a two-story garden style multifamily community originally built in 1984.

The Hudson served as S2’s 12^th 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.