S2 Capital acquired The Muse in March 2017. The Muse is an 804-unit community located in Dallas, TX.
Business Plan & Execution
Formerly named Tierra Linda, this one, two and three-story garden style multifamily communities was originally constructed in 1969.
This project represented a continuation of S2’s “deep value-add strategy”, which involves identifying physically and operationally distressed properties that are good candidates for rent increases in well-located markets that S2 has extensive knowledge of.
The thesis for this investment was driven by an absentee owner, deferred maintenance, lack of reinvestment, reasonable purchase price and strong location.
S2 budgeted just over $11k p/unit in renovation costs that resulted in amenities and finishes with higher quality than competing properties in the submarket.
S2 successfully increased rents by 42% from $685 to $973 at the time of sale and surpassed other income projections related to the amenities package implemented.
41.5% IRR (2.07x MOIC)