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S2 acquires four Atlanta metro properties

he portfolio includes Cornerstone Apartment Homes, Pointe at Norcross, Sonoma Ridge Apartment Homes, and Woodland Ridge Apartments.

S2 Capital has acquired a four-property portfolio in the Atlanta metro area. The portfolio includes Cornerstone Apartment Homes, Pointe at Norcross, Sonoma Ridge Apartment Homes, and Woodland Ridge Apartments. No financial terms were disclosed.

PRESS RELEASE

Dallas, TX, April 11th, 2022 – S2 Capital, LLC (“S2”) today announced it has acquired a four-property portfolio in the Atlanta metro area. The portfolio totals 1,406 units across four mid-1980s assets and includes Cornerstone Apartment Homes, Pointe at Norcross, Sonoma Ridge Apartment Homes, and Woodland Ridge Apartments. S2, a national value-add multifamily investor with more than $9 billion in transaction volume, is making this investment from its fund, S2 Multifamily Value-Add Fund 1. Terms of the transaction were not disclosed.

Over the next two years, S2 expects to spend approximately $5 million per property, or over $20 million, in renovations. Unit interiors will be updated and will feature stainless steel appliances, hard-surface countertops, undermount sinks, kitchen backsplash, vinyl flooring, hardware, light fixtures, and ceramic shower tile. Planned upgrades for exterior spaces are property-specific, and are expected to include enhanced amenity spaces, leasing offices, clubhouses, swimming pool, landscaping, balcony enclosures, monuments, and signage.

Located at 2100 Winters Park Drive in Atlanta, Cornerstone Apartment Homes is a 344-unit, two-story garden style apartment complex featuring one-and two-bedroom units. Sonoma Ridge Apartment Homes, located at 4659 Dawson Boulevard in Atlanta, offers one-, two-, and three-bedroom units in a two-story garden style apartment community with 440 units. Pointe at Norcross, at 3600 Park Colony Drive in the submarket of Norcross, is a 320-unit two-story garden style apartment complex featuring one-and two-bedroom units. Woodland Ridge Apartments, at 1355 Indian Trail Lilburn Road NW in Norcross, offers one-and two-bedroom units in a two-story garden style apartment community with 302 units. All four assets are within a few minutes’ drive of Buckhead, the Central Perimeter, Midtown, and the I-85 Industrial Corridor, in close proximity to a large variety of industries and jobs.

“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, VP of Acquisitions at S2. “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.”

Mark Brandenburg, Lauren Dow and Michael Cosby at JLL helped secure financing for S2. Nathan Swenson and Brooks Colquitt at Cushman & Wakefield represented the seller throughout the transaction.

About S2
Founded in 2012, S2 Capital is a Dallas-based national multifamily investment platform specializing in value-add properties. With more than $9 billion in transaction volume, S2 has acquired approximately 42,000 units through 115 acquisitions, and has successfully invested over $400 million in upgrades and renovations. S2 is vertically integrated, comprised of affiliated businesses including acquisitions, construction, asset management, and operations divisions that work closely together to execute the firm’s business plan. The firm concentrates its investments in the U.S. Sun Belt, including Arizona, Georgia, Florida, North Carolina, and Texas, where job and population growth is expected to outpace the national average and contribute to significant renter demand. For more information, visit www.s2cp.com.