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The Hangar


The Hangar

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


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Business Plan & Execution


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.


Before



After




Key Metrics


Capitalization

$17,463,124

Total Equity

$5,062,831

Renovation Budget

$4,514,219

Year Built

1978

Total Units

268

Average Sqft/Unit

940 sqft

Units Renovated

87%

Starting Rent

$705

Ending Rent

$1,018

Rent Increase

$313

Hold Period

45 months

Net Returns

65.5% IRR (2.72x MOIC)



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