S2 Capital (“S2”), a national vertically integrated real estate investment manager announced the final closing of S2 Real Estate Fund II LP ( “Fund II”), with total capital commitments of $373 million, exceeding fund commitments of its inaugural fund, S2 Multifamily Value-Add Fund I LP (“Fund I”). The milestone underscores strong investor confidence in S2’s strategy, track record, and vertically integrated asset management platform.
“We are incredibly grateful for the continued support from our existing Limited Partners and are equally excited to welcome a diverse group of new institutional investors,” said Scott Everett, Founder and CEO of S2 Capital. “Surpassing the capital raised in Fund I highlights investor trust in our team’s ability to identify and execute multifamily investments in high-growth markets.”
Fund II received broad institutional backing from a mix of U.S. and European investors including global asset managers, public pension, multifamily offices, and sophisticated wealth management firms, further demonstrating the platform’s global appeal.
Consistent with S2’s established, value-add investment thesis, Fund II targets distressed multifamily opportunities across high-growth markets including Texas, Arizona, Colorado, Florida, Tennessee, Georgia, and the Carolinas. More than 60% of Fund II has already been deployed across 14 assets in 9 markets, allowing S2 to capitalize quickly on opportunities that exist due to the recent market dislocation.
Among the investments is The Marley Apartments in North Carolina Located in the heart of LoSo, Charlotte, the modern apartments offer the ultimate gateway to the dynamic Lower South End and Montford neighborhoods. With excitement of brand-new amenity spaces and newly-renovated home interiors featuring quartz countertops, wood-style flooring, and stylish modern lighting. Choose from our studio, one, and two-bedroom apartments designed for contemporary living.
“The current environment has created exceptional opportunities for disciplined, well-capitalized investors,” added Patrick Connell, Head of Capital Formation & Investor Relations at S2 Capital. “Higher interest rates and elevated supply have introduced stress into the multifamily sector, and we’re leveraging our extensive relationships and operating capabilities to create value and drive performance.”
Fund II is actively executing investments aligned with S2’s strategy of repositioning underperforming assets with targeted renovations and improving operational efficiencies, with a focus on long-term value creation.
Founded in 2012, S2 Capital is a Dallas-based multifamily investment platform specializing in value-add, opportunistic, and core-plus investments. With approximately $11 billion in transaction volume, S2 has acquired over 50,000 units across high-growth U.S. markets. The firm operates through a fully integrated approach encompassing acquisitions, capital formation, construction, asset management, and property management.
