Scott Everett’s S2 Capital issues capital call under threat of multifamily fire sale; firm asks investors for $70M in preferred equity

1/27/2026

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The Real Deal

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• Subcategory: Capital Markets: Debt

• Tag: Business: Insights | Strategy

• Additional Filters-Subcategory: Capital Markets: Preferred Equity

• Company: S2 Capital

Highlights
Scott Everett’s S2 Capital issued a capital call for its REIT, asking for $70 million in preferred equity.
Without the funds, the firm will have to sell off properties at an estimated 5.5 percent cap rate, meaning investors would lose between 60 percent and 75 percent of their equity.
S2 launched the REIT in 2024 to shield its multifamily portfolio from floating-rate debt.