S2 Capital Buys 432-Unit Phoenix Community

The property last traded in 2019, for $75 million.

Oxford Apartment Homes. Image courtesy of JLL Capital Markets

S2 Capital Partners has acquired Oxford Apartment Homes, a 432-unit garden-style multifamily property in Phoenix, from Knightvest Capital. JLL represented the seller and procured the buyer. The firm also helped the buyer structure a floating-rate acquisition loan with Blackstone Mortgage Trust.  

The property last changed hands in 2019, when Knightvest Capital acquired it from Brunton Management Co. for $75 million, Yardi Matrix data shows.

Built in two phases completed in 2001 and 2003, the community encompasses 27 two-story buildings on 16.3 acres at 3777 E. McDowell Road. Floorplans include one-, two- and three-bedroom apartments ranging from 663 to 1,159 square feet. Residents have access to a clubhouse, a gym and two swimming pools. 

The former owner fully renovated 182 apartments and made upgrades to 72 units. Property amenities benefiting from capital improvements included the clubhouse, gym and one of the swimming pools.

Located in the Papago Vista neighborhood, the community is some 5 miles east of downtown Phoenix. Desert Palm Power Center, the largest retail center in the area, is roughly 1 mile away from the property.

The JLL Capital Markets team that brokered the transaction included Senior Director Mike Higgins, Managing Directors John Cunningham and Charles Steele and Analyst Matt Prokop. Meanwhile, JLL Senior Managing Director Mark Brandenburg, Managing Director Michael Cosby and Senior Director Brad Miner arranged the acquisition financing.

A large Texas presence

Last month, S2 Capital expanded its Texas footprint with the acquisition of 1,893 units across four properties. The portfolio transaction included Hyde Park at Monfort in Dallas, Twin Creeks Crossing I and Twin Creeks Crossing II in Allen and Tintara at Canyon Creek in Austin. The company is set to invest $13.8 million to renovate the assets in Dallas and Austin.

In July, S2 Capital also acquired two value-add communities totaling 1,358 units in the Dallas-Fort Worth area. The firm plans to spend a combined $20.2 million on upgrading the apartments and improving the property’s amenity mix.

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