S2 Capital Acquires DFW Apartment Community

S2 Capital, a Dallas-based multifamily investment manager focused on the Sun Belt states, is expanding its Texas holdings with its acquisition of The Place at Saddle Creek, a 238-unit community in Carrollton, Texas. Scottsdale, Ariz-based MC Cos. sold the property.

Terms of the transaction were not disclosed, however, S2 stated it has assumed an existing Freddie Mac loan at a low leverage point that will ensure immediate cash flow at the property level.

S2 has rebranded the suburban Dallas property as Brookbend. The firm is planning comprehensive, value-add renovations at the community, which was built in 1983. Only a few of the apartments have already been upgraded. S2 plans to renovate more units adding modern features such as quartz countertops, stainless steel appliances, upgraded flooring, new kitchen hardware and bathroom fixtures. The firm also plans to renovate the building’s exterior and improve the leasing office, gym and pool areas.

Saddle Creek

Located at 3420 Country Square Drive, the property’s two-story buildings host one- and two-bedroom units ranging from 790 to 1,373 square feet.

Community amenities include two pools, outdoor grilling stations, picnic areas, renovated fitness center, tennis and pickleball courts, basketball court, playground, pet spa and dog park, resident lounge, business center, package lockers and Wi-Fi in common areas.

The property is near shopping and dining options, public parks, nature areas and Lewisville Lake, a destination for boating, fishing and outdoor recreation. Residents are connected to the greater Dallas-Fort Worth area though major transportation systems including the Dallas North Tollway and Interstate 635.

S2, which focuses on value-add, opportunistic and distressed investments, has acquired more than 47,000 units through 137 acquisitions totaling about $10 billion in transaction volume in states including Texas, Arizona, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia. The multifamily investment platform invests through its series of commingled closed-end vehicles.

The firm has been active in recent months. Earlier this summer, S2 acquired Vineyard Hills Apartments, a 202-unit garden-style community in Austin, Texas, and the 104-unit Belle Rive Club Apartments in Jacksonville, Fla., in separate deals with two different sellers.

In December, S2 acquired Timber Creek, a 352-unit community in Charlotte, N.C., for $49 million from NexPoint Residential Trust. Two months earlier, the firm purchased two multifamily properties totaling 768 units in the Dallas-Fort Worth metro communities of Grand Prairie and Mesquite, Texas.