LaTerra Capital, Respark Residential to Buy Chicago Multifamily Portfolio for $455M

LaTerra Capital Management, an affiliate of LaTerra Development, and Respark Residential, a real estate investment manager, are set to buy a seven-property multifamily portfolio in and around Chicago for $455 million, the companies announced Monday.

LaTerra and Respark are under contract to acquire the 1,495-unit portfolio, which consists of a mix of high-rise, mid-rise, garden-style and townhome communities spread across “key Chicago suburban submarkets” such as Evanston, Lombard and Elmhurst, the companies said.

The seven properties are Eldridge Townhomes in Elmhurst, Elm Creek Apartments & Townhomes in Elmhurst, Evanston Place Apartments in Evanston, Yorktown Apartments in Lombard, 2200 Grace Apartment Homes in Lombard, Hyde Park Tower Apartments in Chicago, and Willow Bend Apartments in Rolling Meadows, according to the companies.

The purchase is expected to close during the first quarter of 2026.

“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,” Chris Tourtellotte, managing director at LaTerra, said in a statement. “Entering the market with this sizable acquisition demonstrates our commitment to accumulate a portfolio of existing apartments in high-growth and supply-constrained markets.”

“This portfolio represents an opportunity to acquire institutional assets with strong in-place cash flows and compelling market tailwinds,” added Ben Jones, chief investment officer of Respark. “Chicago’s supply-demand imbalance, combined with the existing financing and scale of this transaction, creates a highly attractive risk-adjusted return profile.”

Following the portfolio acquisition, LaTerra and Respark plan to continue to “scale a portfolio of existing multifamily assets in supply-constrained, high-growth markets where long-term fundamentals support durable cash flow and value creation,” according to the announcement.

The new deal will add to LaTerra’s more than 3,000 developed units throughout California, New Mexico and Texas, as well as give Respark and its affiliates more than $1.5 billion in assets under management.

News of the acquisition comes after a busy period for rent growth in Chicago, where multifamily rental buildings have an occupancy rate of around 97 percent, according to data from CoStar. In the past year, apartment renters in Chicago absorbed nearly 11,000 units in the market, while 6,700 new units have been delivered, CoStar said.

Isabelle Durso can be reached at idurso@commercialobserver.com.