DALLAS, Dec. 22, 2025 — S2 Capital (“S2”), a national, vertically integrated real estate investment manager, has announced its acquisition of Ovaltine Apartments, a 344-unit garden and loft-style multifamily property in Villa Park, Illinois. The purchase, located in a western suburb of Chicago, signifies the firm’s inaugural investment in the greater Chicago market. Financial details of the deal were not revealed.
This purchase marks a strategic move for S2 into a new major U.S. market, the result of several years of assessment and underwriting in the Chicago area. The property was secured via a highly competitive sales process managed by the JLL Investment Sales team, a transaction that fits S2’s value-add investment approach.
Ovaltine Apartments, which was originally transformed from the historic Ovaltine Chocolate Factory in 2001, is a landmark property boasting unique loft-style floor plans, ceiling heights ranging from 9 to 15 feet, and architectural details uncommon in the Chicago suburbs. Situated in DuPage County, the community is in a supply-constrained submarket where no new multifamily units are being built within a three-mile radius, and which has experienced robust rent growth recently.
“We believe all markets have distinct characteristics, and our move into Chicago is the culmination of years of meticulous research and confidence in its long-term fundamentals,” stated Cole Stephens, Managing Director of Residential Asset Management at S2 Capital. “Ovaltine presents a powerful mix of historic charm, stable demand factors, and potential for value creation, establishing it as an ideal first investment for S2 in Chicago and a valuable portfolio enhancement.”
The apartment community has shown strong performance lately, sustaining average occupancy levels exceeding 95% since January 2024 and consistently achieving higher rent growth than similar properties. With around 98% of the units still requiring full or partial renovations, S2 has a clear opportunity to carry out an extensive upgrade program designed to increase rental income and improve the living experience for residents.
The acquisition was made using S2’s fully discretionary closed-end fund, S2 Real Estate Fund II. The company intends to utilize its vertically integrated operating platform to carry out interior unit upgrades, specific capital enhancements, and operational improvements throughout the investment period.
About S2 Capital
Established in 2012, S2 Capital is a Dallas-headquartered real estate investment manager focused on residential and industrial assets, employing opportunistic, value-add, credit, and core-plus strategies. To date, S2 has purchased more than 51,000 units across the country and has been involved in transactions totaling over $13 billion. The firm operates a fully integrated platform that includes acquisitions, development, capital formation, construction, asset management, and property management. S2 is dedicated to community investment and generating long-term value throughout the entire real estate lifecycle.
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SOURCE S2 Capital LLC