S2 Capital has acquired a distressed portfolio of properties located in Nashville and Knoxville, Tennessee, previously owned by GVA Real Estate Group. They have also added one property in Dallas to their portfolio.
According to Multifamily Dive, S2 utilized $60 million of rescue capital through a structured preferred equity investment with Trinity Investors, the current limited partner of the assets. This allowed them to gain control over five properties. Additionally, they secured a new 5-year senior loan worth $170 million from ACORE Capital.
The four Tennessee properties are as follows:
– Stone Ridge at 500 Piccadilly Row (photo) in Antioch
– Hickory Highlands at 100 Hickory Highlands Dr in Antioch
– North Park Apartments at 5237 Tillery Road in Knoxville
– The Park at Fountain City at 2132 Adair Dr in Knoxville
S2 will now take over as the general partner and have full operational control across all aspects including property management, asset management and construction management. They will also hold major decision-making rights to safeguard their preferred equity investment.
