Olympus Property Launches $28.64M Chicago-Area Multifamily DST
Olympus Property has launched Olympus Station 250 DST, a $28.64 million equity offering backed by a newly built 166-unit Class A multifamily community in Mundelein, Ill., a suburb of Chicago. It is the sponsor’s first investment in the greater Chicago market.
The Delaware statutory trust offering launched Sept. 21 and is available to accredited investors under Regulation D Rule 506(c), with ARKap Markets serving as managing broker-dealer, the company said. The total offering, including debt, is $60.45 million. The minimum investment is $25,000 for cash investors and $250,000 for 1031 exchange investors; the sponsor can waive either minimum.
The offering projects a 5.01% first-year cash-on-cash return. The property is financed with a $31.81 million Fannie Mae loan at a 5.24% interest rate with seven years of interest-only payments, according to the company. Olympus expects the offering to close within three to six months and projects a hold period of two to seven years. The firm said its historical average hold is 5.5 years.
Olympus acquired Station 250 on July 31 for $52.75 million, or about $318,000 per unit, from developer Synergy Construction Group. The company said the acquisition cap rate was 5.7% and average in-place rents are $2,215 per month. Olympus said it built its presence and relationships in the Chicago market before the deal and that the developer chose it as the buyer because of its record of closing transactions.
Completed in 2024, the four-story community at 250 Plaza Circle in downtown Mundelein offers studio, one-, and two-bedroom units. The company said the property is 92.2% occupied.
“Station 250 fits our criteria for adding a property to the Olympus DST platform: new construction, a strong location and a basis we feel good about,” said Wade Madden, chief executive officer of Olympus Property. “It has cash flow today, convenient access to transit and a local tax structure that we believe will benefit the investment over time. Together, those qualities make it a strong addition to our 1031 exchange offerings.”
The property is near the Mundelein Metra station, which provides commuter rail service to Chicago. Mundelein is in Lake County, whose employment base includes corporate and life sciences employers such as Abbott, AbbVie, CDW, Grainger, and Baxter International.
According to Olympus, the Southwest Lake County submarket has absorbed all multifamily units delivered since 2020. Over that period, annual rent growth has averaged 4% and occupancy has averaged 93.5%.
Amenities include a resort-style pool, a fitness center with yoga and spin rooms, a dry sauna, a sports simulator lounge, resident lounges, a game room, a business center, EV charging, and rentable garages. Units have quartz countertops, kitchen islands, full-size washers and dryers, and wood-style plank flooring.
The offering follows Olympus Tradewinds DST and Olympus Coronado DST, as well as the sponsor’s 2024 launch of Olympus Property REIT I LLC.
Founded in 1992 and based in Fort Worth, Texas, Olympus Property reports $9.6 billion in assets under management across 144 properties totaling about 39,000 units. The firm said its 59 full-cycle events since inception have produced a gross 30.78% average deal-level internal rate of return and a 3.05x average equity multiple.
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