Apartment Investment and Management Company (AIMCO) is selling a portfolio of seven apartment properties in the US to LaTerra Capital Management and Respark Residential for $455m (€387m).
The partnership between LaTerra and Respark has agreed to acquire the 1,495-unit multifamily portfolio in Chicago’s suburban submarkets, including Evanston, Lombard and Elmhurst.
The portfolio consists of a mix of high-rise, mid-rise, garden-style and townhome communities, the partnership said, adding that a number of the properties will undergo renovations and active asset management initiatives “designed to enhance operations while preserving the stability of in-place cash flow”.
The partnership also intends to scale a portfolio of existing multifamily assets, targeting US markets.
Charles Tourtellotte, CEO of LaTerra, said: “The addition of these communities to LaTerra’s portfolio accelerates the recent launch of our multifamily acquisition strategy through LaTerra Capital Management, which complements our existing ground up development platform.
“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 accquistions in select US markets.”
Ben Jones, CIO of Respark, said: “This portfolio represents an opportunity to acquire institutional assets with strong in-place cash flows and compelling market tailwinds.
“Chicago’s supply-demand imbalance, combined with the existing financing and scale of this transaction, creates a highly attractive risk-adjusted return profile. With this acquisition, Respark and it’s affiliates will have more than $1.5bn in assets under management.”
Chris Tourtelotte, LaTerra managing director, said: “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.
“Entering the market with this sizeable acquisition demonstrates our commitment to accumulate a potfolio of existing apartments in high-growth and supply constrained markets.”
Justin Campbell, SVP of acquisitions at Respark, said: “This transaction represents a significant step forward in the continued expansion of Respark’s multifamily platform. The combination of scale, in-place performance, and market fundamentals made this a compelling acquisition for us.”
The sale of the Chicago portfolio is anticipated to yield approximately $160m in net proceeds, with AIMCO planning to distribute the majority of this sum to shareholders following the expected approval of its proposed plan of sale and liquidation in early 2026.
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