S2 Capital completed the purchase of four contiguous class-A multifamily properties from JLB Partners in Dallas this week. The acquisition, totaling a combined 1,235 units, is part of the company’s larger plan of acquiring high-end multifamily assets throughout DFW and the surrounding MSAs.
NorthMarq’s Dallas investment sales team of Taylor Snoddy, managing director, James Roberts, senior vice president and Phillip Wiegand, senior vice president brokered the sale.
“JLB built a great community, and we jumped at the opportunity to own these assets,” said Scott Everett, Founder and CEO of S2 Capital. “We are very excited to partner with Pennybacker Capital in such a great location for our 28th deal together, and are big believers in Dallas long term.”
Pennybacker Capital is a long-term equity partner with S2.
“These trophy assets have an irreplaceable location within Dallas,” Roberts said. “The seller did a great job in developing a truly unique 1,235-unit community. This was a good fit for the buyer as they continue to add more class-A assets to their extensive portfolio.”
The portfolio is comprised of:
· The Ash at the Branch: The 402-unit multifamily property is located at 4646 Amesbury Drive in Dallas, Texas. It was constructed in 2017.
· Cedar at the Branch: The 321-unit multifamily property is located at 4606 Amesbury Drive in Dallas, Texas. It was constructed in 2020.
· Live Oaks at the Branch: The 196-unit multifamily property is located at 4670 Amesbury Drive in Dallas, Texas. It was constructed in 2014.
· Teak at the Branch: The 316-unit multifamily property is located at 4601 Amesbury Drive in Dallas, Texas. It was constructed in 2015.
This portfolio is well-positioned in one of the most exciting areas that Dallas has to offer. It is located next to some of the best restaurants and most desirable neighborhoods in Dallas, including to Highland Park, Greenville, Knox Henderson, and Uptown. Residents will also have direct access to a 30+ mile trail system and the Dallas CBD is less than a 15-minute drive away.
These beautiful class A apartments also offer high-end interior finishes including with granite and quartz countertops, hardwood floors, stainless steel energy-efficient appliances, and custom cabinetry with glass front displays.
The transaction marks nearly $2 billion in closings between NorthMarq and S2 Capital, including the sale of six properties totaling more than 2,000 units in the Dallas and Fort Worth MSA’s. This market, according the NorthMarq’s Q2 DFW Multifamily Market Report, continues to lead the country in multifamily transaction activity. Strengthening property fundamentals supported a 30 percent spike in sales velocity during the second quarter, with transactions occurring throughout nearly every submarket. This trend is expected to continue, with investor appetites for area multifamily assets forecasted to remain elevated, supporting further sales velocity. NorthMarq’s Dallas Debt/Equity team of Jeffrey Erxleben, executive vice president/executive managing director, Lauren Bresky, senior vice president, and Loren Hiekenfeld, vice president, arranged acquisition financing for the properties through its relationship with a debt fund. The transaction was structured with a three-year, interest-only term. “NorthMarq explored multiple options including debt funds and bridge-to-SASB,” Erxleben said. ‘Ultimately the borrower elected to go with a debt fund we sourced, as they offered the best combination of proceeds and rate among the debt funds.”
