CHICAGO — A partnership between LaTerra Capital Management and Respark Residential has agreed to acquire a portfolio of seven multifamily properties in suburban Chicago totaling 1,495 units.
Multifamily owner-operator Aimco (NYSE: AIV) plans to sell the portfolio to the partnership for $455 million. The transaction is expected to close in first-quarter 2026, pending the assumption of the properties’ in-place mortgages.
According to Crain’s Chicago Business, the portfolio comprises Evanston Place in Evanston; Hyde Park Tower in Chicago; Elm Creek and Eldridge Townhomes in Elmhurst; Yorktown Apartments and 220 Grace in Lombard; and Willow Bend in Rolling Meadows.
Aimco recently concluded its year-long strategic review process and is moving forward with its “plan of sale and liquidation.” The Denver-based firm says that the buyers have completed due diligence and funded in part a $20 million nonrefundable deposit for the acquisition. Aimco says that the net proceeds from the sale will total $160 million.
For LaTerra, the Aimco acquisition allows the Marina del Rey, Calif.-based company to increase its holdings in Chicago, which is currently the No. 1 market in the United States for rent growth, according to data from CoStar Group. The market saw 6,700 new units delivered in the past 12 months while absorption totaled 11,000 units, pushing the market’s occupancy rate to 97 percent.
“This portfolio allows LaTerra, which has developed more than 3,000 units throughout California, New Mexico and Texas, to immediately scale and pave the way for additional acquisitions in select U.S. markets,” says Charles Tourtellotte, CEO of LaTerra.
“Chicago has emerged as a top apartment market in the nation; this fact is evident through robust lease trade-out and occupancy data across the portfolio,” adds Chris Tourtellotte, managing director of LaTerra.
Respark Residential is headquartered in Fort Lauderdale and was founded in 2020. The Chicago-area portfolio will increase the company’s assets under management to more than $1.5 billion, according to Ben Jones, chief investment officer at Respark.
Aimco’s current portfolio includes 15 fully stabilized multifamily communities spanning 2,524 apartments, three recently completed Class A development projects containing 933 apartments, one fully funded active development project in the construction phase and various land holdings.
The company’s stock price closed on Monday, Dec. 15 at $5.68 per share, down from $8.65 a year ago, a 34.3 percent decline.
— John Nelson