S2 Capital Acquires Ovaltine Apartments, Marking Entry into the Chicago Market

DALLAS, Dec. 22, 2025 /PRNewswire/ -- S2 Capital ("S2"), a national vertically integrated real estate investment manager, today announced the acquisition of Ovaltine Apartments, a 344-unit garden and loft-style multifamily community located in Villa Park, Illinois, a western suburb of Chicago, marking the firm's first investment in the greater Chicago area. Terms of the transaction were not disclosed.

The acquisition represents a strategic expansion for S2 into a new major U.S. market following several years of evaluation and underwriting across the Chicago region. The property was acquired through a highly competitive marketing process led by the JLL Investment Sales team and aligns with S2's value-add investment strategy.

Originally converted from the historic Ovaltine Chocolate Factory in 2001, Ovaltine Apartments is a generational landmark asset featuring distinctive loft-style layouts, 9- to 15-foot ceiling heights, and unique architectural character rarely found in suburban Chicago. The community is located in DuPage County, a supply-constrained submarket with no new multifamily units currently under construction within a three-mile radius and strong recent rent growth.

"All markets are not created equal, and our entry into Chicago reflects years of disciplined research and conviction around long-term fundamentals," said Cole Stephens, Managing Director of Asset Management, Residential at S2 Capital. "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."

The property has demonstrated exceptional recent performance, maintaining average occupancy above 95% since January 2024 while consistently outperforming comparable properties in rent growth. Approximately 98% of units remain unrenovated or only partially upgraded, providing S2 with the opportunity to execute a comprehensive renovation program aimed at driving rental growth and enhancing resident experience.

S2 acquired the asset through its fully discretionary closed-end fund, S2 Real Estate Fund II. The firm plans to leverage its vertically integrated operating platform to implement interior renovations, targeted capital improvements, and operational efficiencies over the investment horizon.

About S2 Capital

Founded in 2012, S2 Capital is a Dallas-based real estate investment manager specializing in residential and industrial across opportunistic, value-add, credit, and core-plus strategies. Since its inception, S2 has acquired more than 51,000 units nationwide and transacted over $13 billion in total capitalization. The firm maintains a fully integrated platform encompassing acquisitions, development, capital formation, construction, asset management, and property management. S2 is committed to investing in communities and creating long-term value through every stage of the real estate lifecycle.

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SOURCE S2 Capital LLC