S2 Capital is again pulling the trigger on Dallas-Fort Worth multifamily purchases, acquiring nearly 800 units recently in fast-growing suburban areas.
The Dallas-based firm, headed by founder and CEO Scott Everett, purchased the 126-unit Falltree Apartments in Mesquite and the 642-unit Silverbrook apartment complex in Grand Prairie for undisclosed amounts, according to a news release.
CBRE brokers Danny Baker and William Hubbard represented the sellers, whose identities couldn’t be determined. Harry Krieger of CBRE represented S2 in securing financing.
The deals mark the first acquisitions this year for S2, a firm that was previously on a Texas multifamily buying spree. It bought at least 10,000 apartment units in 2021, when it was the largest multifamily buyer in Texas and held 16,000 units.
“We have remained very patient with our capital as pricing and capital markets continue to deteriorate,” said Ryan Everett, vice president of acquisitions. “These deals transacted at a basis that felt very compelling for our investors in markets we know extremely well.”
Falltree, located at 19200 Lyndon B Johnson Freeway, is in a submarket that ranks third for rent growth in the Dallas-Fort Worth region. S2 plans to perform renovations, including upgraded appliances, floors and fixtures in all of the units, along with improved amenities, such as a revamped clubhouse and landscaping.
S2 has similar renovation plans with the Silverbrook, at 2934 Alouette Drive. In addition to overhauling the units with improved appliances and cosmetic features, the firm will upgrade the amenities to include pickleball courts, a dog park and a pool area with grilling stations and pergolas, the release says.
The firm recently hired executives for its distressed acquisitions platform.DFW continues to be a hotbed for multifamily investment. More than 30,000 apartment units sold in the region during the first half of 2023, ranking first in the nation. Multifamily accounted for more than half of DFW’s $8 billion in investment property sales at the midyear mark.