Dallas-based multifamily investment firm S2 Capital is taking a plunge into industrial waters.

The company has agreed to acquire Fort Worth-based Fort Capital, whose 11M SF industrial portfolio is largely concentrated in Texas, S2 announced in a release. The deal is expected to close next week.

The deal is for the operating company and doesn't include the firm's real estate, The Promote reported and an S2 spokesperson confirmed to Bisnow. Fort Capital has a 50-person investment team.

S2 is bringing in two hires to run the newly acquired industrial firm alongside its CEO, Scott Everett.

Chris Roach, who was CEO of commercial real estate appraisal firm BBG until he stepped down in September, is coming in as president. Parker McCormack, previously a senior director in JLL's Dallas office, is stepping in as chief investment officer. McCormack's LinkedIn profile indicates he has been in the CIO role at S2 since January.

Under S2's ownership, Fort Capital will “focus on acquiring and managing value-add and core-plus industrial assets in high-growth markets across the US, with an emphasis on shallow-bay infill industrial,” the release said.

“We’re thrilled this acquisition allows us to provide an additional strategy to offer our investors who are seeking to enhance their portfolio returns in a high-growth sector with needs-based resiliency,” Everett said in the release.

Fort Capital founder Chris Powers called the sale an “exciting step” for the company and its investors. Powers will stay on for six months as an adviser but won't stay with the company permanently, PERE reported.

“We’ve always prided ourselves on being entrepreneurial, strategic, and forward-thinking — and those values are deeply aligned with S2’s approach,” he said. “This partnership supercharges what both platforms can accomplish.”

S2 has a 28,000-unit multifamily portfolio worth about $5B, a spokesperson for the company told Bisnow. Over its lifetime, S2 has acquired $7.5B and disposed of over $3B of multifamily properties, according to its website.