S2 Capital Acquires Two Dallas Area Multifamily Communities

Legends on Lake Highlands and Carrollton Oaks to Undergo Renovations, Cater to Rapidly Growing Dallas Apartment Rental Market

DALLAS, April 4, 2022 /PRNewswire/ -- S2 Capital, LLC ("S2") today announced it has acquired a two-property portfolio in the Dallas metro area. The portfolio includes Legends on Lake Highlands, a 356-unit multifamily community in East Dallas, and Carrollton Oaks, a 320-unit apartment complex in Carrollton, TX. S2, a national value-add multifamily investor with more than $9 billion in transaction volume, is making this investment from its fund, S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.

Over the next two years, S2 expects to spend approximately $5 million per property in renovations.  All interior units will be updated and will feature stainless steel appliances, hard-surface countertops, undermount sinks, kitchen backsplash, vinyl flooring, hardware, light fixtures, and ceramic shower tile. Planned upgrades for exterior spaces are property-specific, and are expected to include enhanced amenity spaces, leasing offices, clubhouses, swimming pool, landscaping, balcony enclosures, monuments, and signage.

Built in 1979 and located at 11201 Lake Highlands Drive on 12 acres, Legends on Lake Highlands is a two-story garden style apartment complex featuring one-and two-bedroom units. The property lies in the submarket of East Dallas, a mature residential neighborhood whose current housing shortage has led to an all-time high demand for rental apartments along with rental occupancy levels of over 97%.

Carrollton Oaks is a two-story garden style apartment community built in 1981 with one-and two-bedroom units. Located at 2500 Guerrero Drive on 17 acres, the property benefits from Carrollton's central location, dynamic population growth, housing affordability and proximity to Dallas jobs and entertainment.

Strong in-migration trends and pro-business local government has contributed to metro Dallas's standing as one of the country's fastest growing multifamily markets in 2021. "Dallas and its surrounding areas are enjoying remarkable demand, and these properties will provide an affordable option in an increasingly expensive area," said Ryan Everett, VP of Acquisitions at S2. "We are excited to invest in upgrading the units to attract tenants and we believe our planned improvements, along with our hands-on residential management, asset management and construction management, will position the property as an attractive asset that can command market rents."

Lauren Bresky and Lauren Heikenfeld of Northmarq helped secure financing for S2. Taylor Snoddy of Northmarq represented the seller throughout the transaction.

About S2
Founded in 2012, S2 Capital is a Dallas-based national multifamily investment platform specializing in value-add properties. With more than $9 billion in transaction volume, S2 has acquired approximately 42,000 units through 115 acquisitions, and has successfully invested over $400 million in upgrades and renovations. S2 is vertically integrated, comprised of affiliated businesses including acquisitions, construction, asset management, and operations divisions that work closely together to execute the firm's business plan. The firm concentrates its investments in the U.S. Sun Belt, including Arizona, Georgia, Florida, North Carolina, and Texas, where job and population growth is expected to outpace the national average and contribute to significant renter demand. For more information, visit www.s2cp.com.

Contact
Caroline Luz
Lambert
203-656-2829
[email protected]

SOURCE S2 Capital