S2 Capital, a Dallas-based multifamily investment platform specializing in value-add properties, has acquired a portfolio of four apartment communities in the metro Atlanta area through its S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.
Built in the mid-1980s, the four communities—Cornerstone Apartment Homes, Pointe at Norcross, Sonoma Ridge Apartment Homes, and Woodland Ridge Apartments—are comprised of 1,406 units.
Over the next two years, S2 plans to spend approximately $5 million per property in renovations. Units will be updated to include stainless steel appliances, hard-surface countertops, undermount sinks, kitchen backsplashes, and vinyl flooring. Common area upgrades will be property-specific and are expected to include enhanced amenity spaces, leasing offices, clubhouses, swimming pools, landscaping, balcony enclosures, and signage.
“The Atlanta area is a great fit for our value-add strategy targeting workforce housing, particularly in the Northlake/Norcross submarket, where almost 40% of residents are renters,” said Davey Leach, vice president of acquisitions. “Atlanta has posted record demand and rent growth figures over the past few quarters, and these submarkets are enjoying 98% or higher occupancy rates. The opportunity to renovate four properties in the same submarket to a similar standard leads to immediate economies of scale that will benefit our tenants as well as our investors.”
All four garden-style communities are in close proximity to a variety of jobs and industries. The 344-unit Cornerstone Apartment Homes in Atlanta features one- and two-bedroom units. The 440-unit Sonoma Ridge Apartment Homes in Atlanta includes one-, two-, and three-bedroom units. The 320-unit Pointe at Norcross and the 302-unit Woodland Ridge Apartments, both in the submarket of Norcross, offer one- and two-bedroom units.
JLL’s Mark Brandenburg, Michael Cosby, and Lauren Dow helped secure financing for S2, while Cushman & Wakefield’s Brooks Colquitt and Nathan Swenson represented the seller in the transaction.
