Arlington, Texas—S2 Capital, a multifamily real estate investment specialist in the Dallas/Fort Worth area, has acquired the Holly Ridge apartment property. The community, which is at 2504 Ivy Brook Court in Arlington, a suburb of DFW, has 290 units.
Holly Ridge was originally built in 1981. S2 Capital bought the apartments at a live auction in Houston out of a 23-property portfolio that had been through bankruptcy multiple times the previous five years.
S2 Capital plans to spend $4 million on renovations for the Holly Ridge property. The apartments are near Texas 360 and I-30, and located across from S2 Capital’s sister property, The Hudson, which has a total of 660 units.
“This deal required a 5 percent non-refundable deposit upon winning the deal at auction and 45 day close,” said Scott Everett, principal, S2 Capital. “So that helped shrink the competition and was priced accordingly for the risk.”
Since its establishment in 2012, S2 Capital has acquired over $300 million in B and C multifamily communities (over 6,000 units). Its strategy is to acquire value adds: the company has thus far invested over $75 million in upgrades and renovations in the properties it has bought. Its affiliate, S2 Construction LLC, has construction managed all its projects.