S2 Capital Partners Sells 2,000-Plus DFW Apartment Units To New York Firm
Workforce housing in Dallas-Fort Worth is all the rage, prompting New York-based investment firm Manhattan Five Partners LLC to acquire 2,167 DFW apartment units from S2 Capital Partners in its first Texas buy.
The purchaser acquired six multifamily properties across the Metroplex, according to NorthMarq, which represented the seller during the transaction.
"These properties are strong assets that we’ve held in our portfolio for quite a while," S2 Capital CEO Scott Everett said in a statement. "These core workforce housing properties have some value-add already completed and plenty of upward trajectory."
NorthMarq's Taylor Snoddy, James Roberts and Phillip Wiegand ushered the sale to its final closing. This is the first time Manhattan Five Partners LLC has acquired property in Texas, according to NorthMarq.
The complexes acquired are The Hangar at 201 South Clark Road in Cedar Hill; the Annex at 4709 Samuell Blvd. in Mesquite; Forty200 at 4200 U.S. 80 Frontage Road in Mesquite; Residence on Lamar at 1224 East Lamar Blvd. in Arlington; Amp at the Grid on Polk Drive in Arlington; and Current at the Grid, also on Polk Drive in Arlington.
Multifamily has remained a strong performer for investors in the past year despite challenges from the coronavirus pandemic.
Outstanding multifamily debt rose by 8.2% in 2020, or by $127.9B annually, the Mortgage Bankers Association said in its latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Analysts attribute this increase to strong investor confidence in the sector.
"Multifamily lenders and investors continued to have a fair amount of faith in multifamily to get through the pandemic and to be in good shape on the other side of it," MBA Vice President of Commercial Real Estate Research Jamie Woodwell told Bisnow in March.
In just the final three months of 2020, multifamily mortgage debt ticked up 2.5%, or roughly $41.8B, from the third quarter of 2020, reaching a total of $1.69 trillion in Q4, the MBA said.