3650 Capital Provides $104M Pref Equity Injection Into $455M Acquisition
Rents in Chicago’s metro area are rising at the fastest rates in the U.S.
By Brian Pascus April 1, 2026 4:40 pm
reprints
3650 Capital is at it again, this time coming in with a sizable preferred equity injection into a 1,500-unit multifamily portfolio in Chicago.
As part of LaTerra Capital Management and Respark Residential’s acquisition of a seven-property, 1,495-unit multifamily portfolio in the Chicago area from Aimco, a $455 million transaction, 3650 Capital provided $104 million in preferred equity in the deal.
The assets were already encumbered by $308 million of Fannie Mae agency financing. The agencies do not allow subordinate debt to enter behind their capital stacks, but make exceptions for preferred equity from specific investors and lenders like 3650 Capital that have obtained designated approval, sources said.
Trade website The Promote first reported news of the deal.
Jonathan Roth, 3650 Capital co-founder and managing partner, noted that $20 million of capital will be used to renovate aspects of the properties and that the Chicago market presents favorable fundamentals for multifamily investments.
“There is an opportunity to grow rents,” Roth said. “The greater Chicago area has enjoyed tremendous growth, and the supply coming on still lags the demand. These assets, with their history, are almost always full, and the sponsor is adept at renovating the new units.”
Asking rents for multifamily properties in Chicago’s metropolitan statistical area are growing at the fastest rates among all major U.S. markets, as its total occupancy sits near 95 percent, according to CoStar.
“We like this transaction because it’s a portfolio of assets that are nearly 100 percent occupied and are very well maintained by the seller,” added Roth.
The multifamily assets are all in Illinois cities or towns within 25 miles of Downtown Chicago. Assets include a 58-unit townhome community at 1101-1181 South Eldridge Lane in Elmhurst; a 400-unit community located at 1 Elm Creek Drive in Elmhurst; a 190-unit complex at 1715 Chicago Avenue in Evanston; a 292-unit high-rise at 2233 South Highland Avenue in Lombard; a 72-unit community at 2200 South Grace Street in Lombard; a 155-unit high-rise building at 5140 South Hyde Park Boulevard in Chicago; and a 328-unit community at 2850 Southampton Drive in Rolling Meadows.
Brian Pascus can be reached at bpascus@commercialobserver.com.
