The Hangar

S2 Capital acquired The Hangar in May 2017. The Hangar is a 268-unit community in Cedar Hill, TX.

Previously known as High Point Village, this two-story garden multifamily community was originally constructed in 1978.

The thesis for this investment was an opportunity to purchase a well-located, poorly managed, underperforming property at an attractive price per unit.

With help from S2’s affiliate, S2 Construction, S2 spent about $17k per unit renovating the property and converting it from a Class “C” to Class “B” asset.

Interior renovations included all new flooring, countertops, appliances, paint, and fixtures.

Exterior renovations were focused on existing amenities, adding an outdoor living area, dog park, and rebranding the property.

S2 originally acquired the project at only 40% occupancy but believed with help from its vertically integrated management company, they could quickly stabilize and increase NOI.

By time of sale, The Hangar was at 97% occupancy and S2 had successfully increased rents 44% from $705 to $1,018 while renovating 87% of units at the property.

The Hudson

S2 Capital acquired The Hudson in October 2015. The Hudson is a 660-unit community in Arlington, TX.

The Hudson is a two-story garden style multifamily community originally built in 1984.

The Hudson served as S2’s 12^th value add deal, furthering the firm’s economies of scale in the Dallas-Fort Worth Market.

S2 originally acquired the property in October 2015 and budgeted to spend approximately $12,500 per unit in renovation costs.

S2 implemented numerous exterior improvements, including new paint, improved landscaping, Trex composite patio railing, brand-new interiors in the clubhouse and the resident lounge, and a redesigned pool area.

S2 realized successful rent increases of 23%, from $733 to $905 at the time of sale. Furthermore, S2 believed the property maintained unrealized value, thus recapitalized the deal in September of 2017 and once again in December of 2020.