S2 Snags 4 Tennessee Distressed Properties

S2 Capital acquired a distressed portfolio of properties in Nashville and Knoxville, Tennessee, formerly owned by GVA Real Estate Group. They also picked one up in Dallas.

Multifamily Dive reports that to take control of the five properties, S2 placed $60 million of rescue capital through a structured preferred equity investment in a new joint venture with Trinity Investors, the existing limited partner of the assets. S2 also secured a new 5-year, $170 million senior loan through ACORE Capital.

The four Tennessee properties include:

• Stone Ridge at 500 Piccadilly Row (photo) in the Nashville suburb of Antioch, Tennessee.
• 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.

In addition to taking over as the general partner with full operational control across property, asset and construction management, S2 will have major decision rights to protect the preferred equity investment.