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S2 Capital Acquires 3.6M SF Multifamily Portfolio Spanning DFW, Houston

S2 Capital has surpassed Blackstone as the most active multifamily buyer in Dallas-Fort Worth following a 14-property portfolio acquisition.


Courtesy of S2

Lincoln Crossing in Dallas is one of the 14 acquired properties.

The 3.6M SF portfolio spans 4,455 units across 11 garden-style properties in the Metroplex and three in Houston, according to a news release. The average rent is $1,100 per month. S2 plans to renovate both the exteriors and interiors of the units, built between 1979 and 1987, which Vice President of Acquisitions Ryan Everett said is intended to give tenants a quality place to live at a reasonable price.

“The run up in mortgage rates for the single-family market has exacerbated a broader affordability issue leaving a lot of people looking to rent as the more affordable option,” he said in a statement. “We are excited about this portfolio because while people begin searching for affordable housing options, we don’t believe that should be associated with an outdated community experience.”

The average monthly rent for an 880 SF apartment in DFW was $1,560 in June, outpacing Houston, San Antonio and Austin, according to ApartmentData.com. Rental rates in the Metroplex have grown more than 15% over the past 12 months, per the data.

In some cases, it is still cheaper to rent than to buy. A recent analysis by Insidershows the median mortgage payment was about $1,870 per month in Dallas and $1,815 in Houston.

The properties in the deal include:

  • 800 Link, a 440-unit, Class-B garden-style apartment building in Dallas.
  • Canyon Ridge, a 164-unit, Class-B garden-style complex in Rockwall.
  • Casa Valley, a 150-unit, Class-B garden-style community in Irving.
  • Cinnamon Park, a 272-unit, Class-B garden-style development in Arlington.
  • Huntington Lakes, a 405-unit, Class-B garden-style complex in Dallas-Fort Worth.
  • Lincoln Crossing, a 532-unit, Class-B garden-style community in Dallas-Fort Worth.
  • Preslee, a 290-unit, Class-B garden-style building in Dallas-Fort Worth.
  • Preston Greens, a 257-unit, Class-B garden-style complex in Dallas-Fort Worth.
  • Spring Creek, a 236-unit, Class-B garden-style development in Garland.
  • Springfield, a 264-unit, Class-B garden-style complex in Mesquite.
  • Summer Meadows, a 389-unit, Class-B garden-style community in Plano.

Mark Brandenburg, Lauren Dow and Michael Cosby with JLL and Lauren Bresky and Loren Heikenfeld with NorthMarq helped secure debt financing. The investment sales were led by Roberto Casas, Rob Key, Matthew Lawton and Dustin Selzer with JLL as well as Taylor Snoddy with NorthMarq.

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