Aimco has taken another step toward the liquidation of its assets. The firm is under contract to sell its seven-property Chicago multifamily portfolio for $455 million to LaTerra Capital Management, in partnership with Respark Residential.
LaTerra Capital Management has completed due diligence and funded, in part, a nonrefundable deposit that will total $20 million by Jan. 15. The acquisition will be leveraged with assumable below-market Fannie Mae financing, providing substantial positive leverage for the deal.Closing is scheduled for the first quarter, pending assumption of the in-place mortgage loans.
Accounting for associated property-level debt and transaction costs, the net proceeds from the sale are expected to be approximately $160 million. If the closing occurs as planned, the majority of net proceeds will be distributed to shareholders, pursuant to Aimco’s Plan of Sale and Liquidation, which it anticipates putting before shareholders for approval early next year.
The portfolio includes 1,495 units in key suburban submarkets, comprising a mix of high-rise, mid-rise, garden-style, and townhome communities. Select properties will undergo targeted renovations and asset management initiatives to enhance operations. The portfolio includes:
- 2200 Grace and Yorktown Apartments in Lombard;
- Eldridge and Elm Creek in Elmhurst;
- Evanston Place in Evanston;
- Hyde Park Tower in Chicago; and
- Willow Bend in Rolling Meadows
The transaction marks a strategic partnership between LaTerra Capital Management, an affiliate of LaTerra Development, with Respark. With LaTerra’s vertically integrated development and acquisition platform and Respark’s multifamily operating, capital structuring, and asset management expertise, the partners plan to scale a portfolio of existing multifamily assets in high-growth, supply-constrained markets with strong long-term fundamentals.
“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,” said Charles Tourtellotte, CEO of LaTerra, which is based in Marina del Rey, California. “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.”
LaTerra is bullish on the Chicago area, which has emerged as a top apartment market. RentCafe ranked Chicago and its suburbs as the second and third hottest apartment markets in the nation in 2025. Even though the suburbs had a 1.1% bump in new supply this year, it hasn’t been enough to meet the demand. The suburbs have seen an occupancy rate of 95.5% and a lease renewal rate of 70.3%.
“This fact is evident through robust lease trade-out and occupancy data across the portfolio,” noted LaTerra managing director Chris Tourtellotte. “Entering the market with this sizeable acquisition demonstrates our commitment to accumulate a portfolio of existing apartments in high-growth and supply-constrained markets.”
Justin Campbell, senior vice president of acquisitions at Respark, added the transaction represents a significant step forward in Respark’s multifamily platform, benefiting from the compelling scale, in-place performance, and market fundamentals.