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 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.

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

Case studies are intended to show the investment process and not performance. The case studies discussed do not represent all past investments by S2. It should not be assumed that investment in the case study was or will be profitable. There is no guarantee that other opportunities will have similar characteristics or results to those described herein, or favorable results at all. Underwritten returns included in this presentation are hypothetical. All underwritten returns are presented net of actual fees and expenses, including management fees and carried interest.