A Dallas-based real estate investor has entered the Chicago multifamily market with a nearly $94 million acquisition west of the city, one of the highest-priced suburban deals in an active year for the property sector.
S2 Capital on Tuesday announced the purchase of the 344-unit Ovaltine Apartments complex in Villa Park, Illinois. Completed Monday, the sale was for $93.7 million, backed by an approximately $60 million loan from Starwood Capital, according to a spokesperson for S2.
The complex of garden and loft apartments is at 1 Ovaltine Court, about 17 miles west of the Loop business district in DuPage County.
The property’s name reflects its origins as an Ovaltine chocolate factory. It was converted into apartments in 2001, according to the buyer.
New York-based seller Osso Capital bought the property for just over $73 million in September 2023, according to CoStar data and online property records.
It is the third-highest price paid for a multifamily property in the Chicago suburbs this year, according to CoStar data. The price trails only a $136 million deal in west suburban Naperville and a $100 million purchase in north suburban Vernon Hills.
Overall, investors have spent a combined $4.9 billion on Chicago-area apartments so far this year, well above the full-year $3.9 billion last year. It is the highest volume since $5.9 billion in 2022.
Osso Capital is led by Olivia John, a former managing director at Blackstone who led the private-equity giant’s multifamily investments, according to Osso’s website. Osso Capital did not respond to a request for comment from CoStar News.
The firm invested about $785,000 on upgrades to the complex and units since early 2024, according to a brochure from JLL, which marketed the property for sale. At the time it went on the market, the complex was 95.5% occupied, with 8% rent increases on the previous 25 signed leases, according to JLL.
The offering was marketed as an opportunity for the buyer to continue upgrading units and increasing rents.
About 98% of the units have yet to be upgraded, according to a statement from S2.
Led by founder and CEO Scott Everett, S2 Capital has acquired more than 51,000 units since the firm began in 2012.
Recently, the firm has raised a $373 million multifamily fund and expanded into industrial property investments. Late last year, S2 acquired a 610-unit property near Atlanta.
The deal at 1 Ovaltine Court in Villa Park followed years of underwriting deals across the Chicago region, according to S2’s statement.
"All markets are not created equal, and our entry into Chicago reflects years of disciplined research and conviction around long-term fundamentals," Cole Stephens, managing director of residential asset management at S2 Capital, said in the statement. "Ovaltine offers a compelling combination of historical character, durable demand drivers, and value creation potential, making it an exciting first investment for S2 in the Chicago market and a strong addition to our portfolio."
For the record
The seller was represented by JLL brokers Mark Stern, Kevin Girard and Zach Kaufman.