S2 Capital Sells Plano Apartments Flagged For Foreclosure

July 31, 202628 Mins read106

Scott Everett’s embattled S2 Capital avoided giving up control of a Plano apartment with a June sale.

The multifamily syndication firm offloaded Hathaway at Willow Bend Apartments, a 229-unit complex at 2525 Preston Road, the Dallas Business Journal first reported. The property was scheduled to be sold at July’s foreclosure auction, according to Roddy’s Foreclosure Listing Service, after S2 allegedly defaulted on a $32.3 million loan from Benefit Street Partners.

News of the sale follows a rough summer for the firm, which recently told investors in its multifamily REIT and $400 million first fund that their equity was wiped out. In a July 1 letter to investors in the fund, Everett shared plans to sell viable properties from the fund into a new vehicle, while other properties will go back to lenders.

Though Hathaway at Willow Bend avoided foreclosure, S2 risks losing six other properties at August foreclosure auctions, including:

The Kace Apartments, at 2301 Avenue H East in Arlington, ($92.2 million loan);
The Republic Apartments, at 245 East I-30 in Dallas ($78.6 million loan);
Hyde Park at Valley Ranch, at 10201 North MacArthur Boulevard in Irving ($69.37 million loan);
Rise Heather Ridge Apartments, at 2600 Heather Ridge Lane in Arlington ($28.1 million);
The Loren Apartments, at 5414 Cedar Springs Road in Dallas ($27.5 million loan); and
A complex, at 2101 Pioneer Parkway in Arlington ($23.8 million loan).

The buyer of Hathaway at Willow Bend is another syndicator: Granite Towers Equity Group, a value-add multifamily investor based in the Dallas suburb of Garland. The firm was cofounded by Dan Blisse, an X Games gold medal-winning snowboarder who started investing in real estate in 2012. Granite Towers manages a 3,300-unit portfolio valued at $500 million, Blisse told the podcast Beyond A Million in May.

The Dallas Business Journal reported that Granite Towers bought the property for $37.7 million. Loan documents show Granite Towers borrowed $26.1 million from Berkeley Point Capital for the purchase. The property was last valued for tax purposes at $32.7 million, according to appraisal data.

The property, which was built in 1984, was 83 percent occupied at the time of the trade, the outlet reported. Blisse said there was deferred maintenance at the property.

S2 used an affordable housing tax break loophole to secure a property tax exemption for the complex, deed records show. The firm did a sale-leaseback with Pecos Housing Finance Corporation, an affordable housing organization more than 400 miles from Dallas.

The program became a cost-cutting measure for struggling multifamily investors, who secured tax exemptions by partnering with far-flung affordable housing groups, and removed properties off tax rolls without local approval. House BIll 21, which Gov. Greg Abbott signed in May 2025, closed the loophole.