S2 Capital, a Dallas-based multifamily investment manager, has announced the acquisition of Dartmouth Woods, a 201-unit garden-style multifamily apartment community in South Lakewood. The terms of the transaction were not disclosed.
Dartmouth Woods, built in 1990 and located at 10025 W. Dartmouth Ave. in Lakewood, features modern two- and three-story buildings in an area characterized by strong demographics, including an average household income of $107,000, a median home price of $585,000 and highly-rated schools.
S2 plans to undertake interior renovations that will include stainless steel appliances, modern lighting, new flooring and updated cabinets, as well as extensive renovations to the exterior and amenities to enhance resident living experiences.
Ryan Everett, vice president of acquisitions at S2 Capital, said, “We have been evaluating potential transactions in the Denver market for two years and are very excited to be making our first investment in the area. Including the Dartmouth Woods transaction, S2 has acquired 1,865 units across Texas, North Carolina, Florida, and now Colorado over the last 12 months. This represents $300+ million of total acquisitions the past 12 months, positioning the firm as a top-25 buyer of multifamily in Sunbelt markets.”
Everett also noted, “Our conviction remains strong that multifamily has become attractively repriced in the short term due to excessive leverage in the system and pressure from interest rates on property cash flows, but the long-term outlook for housing in our target markets remains a compelling investment thesis at these prices for well capitalized investors.”
S2 sees the reductions in new construction permits and starts, potential interest rate cuts from the Federal Reserve and varying levels of market stress as opportunities for investors well-positioned to capitalize.
Founded in 2012, S2 focuses on value-add, opportunistic and distressed investments. With around $10 billion in transaction volume, S2 has acquired over 47,000 units through 140 acquisitions in high-growth domestic markets. The firm is targeting opportunities in areas such as Texas, Arizona, Colorado, Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia, where job and population growth are expected to exceed the national average, driving significant renter demand.