S2 Capital has acquired a portfolio of distressed properties in Nashville and Knoxville, Tennessee from GVA Real Estate Group. They have also added one property in Dallas to their portfolio.
According to Multifamily Dive, S2 invested $60 million through a structured preferred equity investment with Trinity Investors, the current limited partner of the assets. This allowed them to take control of five properties and secure a new 5-year senior loan worth $170 million through ACORE Capital.
The four Tennessee properties include Stone Ridge at 500 Piccadilly Row (pictured) in Antioch, Hickory Highlands at 100 Hickory Highlands Dr in Antioch, North Park Apartments at 5237 Tillery Road in Knoxville, and The Park at Fountain City at 2132 Adair Dr also located in Knoxville.
As part of the deal, S2 will become the general partner with full operational control over property management as well as asset and construction management. They will also have decision-making authority to protect their preferred equity investment.
