S2 Capital Acquires Suburban Denver Apartments
This deal marks the firm’s expansion into Colorado.
S2 Capital has acquired Dartmouth Woods, a 201-unit, garden-style community in South Lakewood, an upscale Denver suburb. The terms of the transaction were not disclosed.
Completed in 1990, Dartmouth Woods comprises two- and three-story buildings in an area with robust demographics, an average household income of $107,000, a median home price of $585,000, and highly rated schools.
Woods, S2’s property in Denver’s South Lakewood suburb. Photo courtesy of S2 Partners
S2 plans interior renovations, including stainless steel appliances, modern lighting, new flooring, and updated cabinets for the property, which is located at 10025 W. Dartmouth Ave. The project also includes extensive exterior and amenities renovations to enhance residents’ living experiences. —
The Denver pickup is the latest in a busy summer of acquisitions for the Sun Belt-focused investment manager. In August, S2 expanded its Texas holdings by acquiring The Place at Saddle Creek, a 238-unit community in Carrollton, Texas. That followed a July deal for a 202-unit, garden-style property in southwest Austin.
The transaction terms were not disclosed; however, S2 stated it had assumed an existing Freddie Mac loan at a low leverage point that would ensure immediate cash flow at the property level. S2 has rebranded the suburban Dallas property as Brookbend. Scottsdale, Ariz-based MC Cos. sold the property.
Including the Dartmouth Woods transaction, S2 has acquired 1,865 units across Texas, North Carolina, Florida, and Colorado over the last 12 months. This represents $300+ million of total acquisitions in the past 12 months, positioning the firm as a top 25 multifamily buyer in Sun Belt markets.
S2 said in a release that it believes that the sharp reduction in new construction permits and starts, interest rate cuts signaled by the Federal Reserve, and various stress levels present a unique moment for investors with discretionary vehicles well-positioned to capitalize on these opportunities.
