S2 Capital purchases 344-unit Ovaltine Apartments in Villa Park, Illinois
A Dallas-headquartered real estate investment firm has officially entered the Chicago multifamily market with a major acquisition west of the city, closing one of the most expensive suburban apartment deals of the year.
S2 Capital announced Tuesday that it has acquired the 344-unit Ovaltine Apartments in Villa Park, Illinois, for $93.7 million. The transaction was finalized Monday and was supported by roughly $60 million in financing from Starwood Capital, according to a spokesperson for S2.
The apartment community, which includes a mix of garden-style and loft units, is located at 1 Ovaltine Court in DuPage County, approximately 17 miles west of Chicago’s Loop business district. The property carries historical significance, as it was originally an Ovaltine chocolate manufacturing facility before being redeveloped into residential apartments in 2001.
The seller, New York-based Osso Capital, acquired the property in September 2023 for just over $73 million, according to CoStar data and public property records.
Based on CoStar data, the transaction ranks as the third-highest-priced multifamily sale in the Chicago suburbs this year. Only two deals exceeded it: a $136 million sale in Naperville and a $100 million acquisition in Vernon Hills.
Investor activity across the Chicago-area apartment market has remained strong. Total multifamily investment has reached approximately $4.9 billion so far this year, significantly surpassing the $3.9 billion recorded for all of last year. This marks the highest annual volume since 2022, when transactions totaled $5.9 billion.
Osso Capital is led by Olivia John, a former Blackstone managing director who previously oversaw the private equity firm’s multifamily investment strategy, according to Osso’s website. Osso Capital declined to comment on the sale to CoStar News.
Since early 2024, Osso Capital invested around $785,000 in property and unit upgrades, according to marketing materials from JLL, which handled the sale. At the time the asset was listed, occupancy stood at 95.5%, and rents on the most recent 25 leases had increased by approximately 8%.
The property was marketed as a value-add opportunity, allowing a new owner to continue renovations and drive rent growth. According to S2 Capital, roughly 98% of the units have not yet been upgraded.
Founded in 2012 and led by CEO Scott Everett, S2 Capital has acquired more than 51,000 apartment units nationwide. The firm has recently expanded its platform, raising a $373 million multifamily fund and moving into industrial real estate investments. Late last year, S2 also acquired a 610-unit apartment community near Atlanta.
S2 stated that the Villa Park acquisition followed several years of evaluating opportunities across the Chicago region.
“Not all markets are the same, and our decision to enter Chicago is the result of years of disciplined underwriting and confidence in the market’s long-term fundamentals,” said Cole Stephens, managing director of residential asset management at S2 Capital. “Ovaltine Apartments combines historic character with strong demand drivers and meaningful upside, making it an ideal first investment in the Chicago market for our firm.”
For the record:
The seller was represented by JLL brokers Mark Stern, Kevin Girard, and Zach Kaufman.
Source: Original reporting by Ryan Ori, CoStar News.
