LaTerra Capital and Respark Residential to acquire 1,495 units and assume existing debt
Denver-based Apartment Investment and Management Co., commonly known as Aimco, has reached a $455 million agreement to sell a seven-property, 1,495-unit multifamily portfolio across the Chicago area, continuing the REIT’s broader liquidation strategy.
Aimco said it expects to finalize the sale to LaTerra Capital Management and Respark Residential by the first quarter of 2026. The transaction was confirmed Monday by both the buyer and seller.
The deal comes during a strong period for Chicago multifamily investment activity. Slower new apartment construction has helped fuel rent growth in the market, making it one of the better-performing major metros this year. According to CoStar data, investors have purchased about $4.6 billion worth of Chicago-area apartment properties so far in 2025 — the highest annual total since 2022.
The transaction remains subject to approval for the buyers to assume existing debt tied to the properties, according to an Aimco filing with the Securities and Exchange Commission. Los Angeles-based LaTerra and Fort Lauderdale-based Respark plan to take over the loans as part of the purchase.
The buyers described the acquisition as part of a long-term partnership focused on building a portfolio of stabilized apartment communities in markets with limited new supply and strong growth fundamentals.
“The addition of these communities accelerates the rollout of our multifamily acquisition strategy at LaTerra Capital Management, complementing our existing ground-up development platform,” said Charles Tourtellotte, chief executive of LaTerra. He noted that the company has developed more than 3,000 units across California, New Mexico and Texas and views the Chicago portfolio as a foundation for further expansion in select U.S. markets.
The sale also follows Aimco’s announcement last month that it intends to speed up the disposition of its remaining assets after completing a strategic review aimed at maximizing shareholder value. Previously, the REIT sold 2,719 apartment units across New England for $740 million to Harbor Group International and CBRE Investment Management.
Aimco expects net proceeds from the Chicago-area transaction to total approximately $160 million.
As part of the agreement, LaTerra and Respark have already placed a $5 million nonrefundable deposit, with an additional $15 million payment due by Jan. 15, according to regulatory filings. The transaction is scheduled to close no later than March.
The portfolio includes a diverse mix of high-rise, mid-rise, garden-style and townhouse communities. The buyers said the assumed Fannie Mae financing carries interest rates below current market levels, enhancing the deal’s overall attractiveness.
Among the properties included are Eldridge Townhomes and Elm Creek Apartments at 1 Elm Creek Drive in suburban Elmhurst. The deal also covers Yorktown Apartments at 2233 S. Highland Ave. and 2200 Grace at 2200 S. Grace St. in Lombard. Additional assets include Hyde Park Tower at 5140 S. Hyde Park Blvd. on Chicago’s South Side, Evanston Place Apartments at 1715 Chicago Ave. in Evanston, and Willow Bend at 2850 Southampton Drive in Rolling Meadows.
“This portfolio offers a chance to acquire institutional-quality assets with solid cash flow and favorable market dynamics,” said Ben Jones, chief investment officer of Respark Residential. He added that Chicago’s supply-demand imbalance, combined with the scale of the transaction and favorable financing, presents a compelling risk-adjusted return. Following the acquisition, Respark and its affiliates will manage more than $1.5 billion in assets.
LaTerra Capital Management operates as an affiliate of LaTerra Development.
Recent notable Chicago multifamily transactions include the $134.5 million sale of the 275-unit Milieu tower in the West Loop and the nearly $175 million sale of North Water Apartments in Streeterville.
Source: Original reporting by Ryan Ori, CoStar News.
