S2 Capital is taking advantage of the slowdown in multifamily supply across the Sun Belt. The Dallas-based real estate investment manager has launched a new development platform focused on multifamily and industrial projects across major Sun Belt markets, a move that positions the company to deliver into a multi-year supply shortage.
The firm has hired veteran developer Carl Starry as president, development, to head up the new business vertical.
According to S2 Capital, the combination of declining new supply, sustained population growth, and long-term fundamentals in the Sun Belt has created the opportunity for disciplined ground-up development over the next five to seven years.
“We believe this is one of the most compelling development environments we’ve seen in the last decade,” said founder and CEO Scott Everett. “Starts have collapsed, demand fundamentals across the Sun Belt remain intact, and deliveries three years from now will be scarce. Financing remains challenging, further muting supply pressures in the near term, and we think developers with the right industry experience, capital relationships, and balance sheet to go vertical today will be rewarded. Carl is the right leader to build it—he has done it before, at scale, and he understands how a platform should be put together from day one.”
Starry brings over two decades of experience to the role, being involved in the development of over 11,800 units with an investment value exceeding $4.1 billion. He previously was executive managing director at Leon Multifamily, where he expanded and led the firm’s development operations, delivering 24 projects across Arizona, the Carolinas, and Texas. Earlier in his career, he served as managing director, North Texas, for Trammell Crow Residential.
“S2’s track record, infrastructure, and conviction in the Sun Belt make this an exceptional platform to build on,” Starry noted. “Scott and the team have spent more than a decade developing an operating and analytical edge in these markets, and that foundation gives us a real competitive advantage as we move into ground-up development. I’m excited to assemble a team that will deliver projects worthy of that foundation.”
Based at S2’s Dallas headquarters and reporting to Everett, Starry will lead the buildout of the development team to support projects across the firm’s Sun Belt footprint.
Since its founding, S2 has acquired over 51,000 units nationwide. This year, the firm ranks No. 45 on the National Multifamily Housing Council’s top apartment owners list, with 27,901 units as of Jan. 1.