Two Chicago-based multifamily investors have enlisted JLL to market their nearly fully leased multifamily property in the northwest suburb of Hoffman Estates.
Tricap Residential Group, led by founder and CEO Bryan Pritchard, and Wolcott Group, headed by founder and president Dennis Wolcott, are seeking buyers for the Haven Hoffman Estates, a 550-unit apartment complex located at 725 West Bode Circle, CoStar reported.
Haven Hoffman Estates, previously known as the Autumn Chase Apartments, has undergone significant renovations since the two investors acquired it for $60.25 million in 2019. The property is being marketed by JLL brokers Kevin Girard, Mark Stern, David Gaines, and Zachary Kaufman.
JLL is promoting the complex’s potential for additional upgrades and rent increases, with more than half of the units still eligible for modernization. The renovated apartments are currently commanding a $200 premium over non-renovated units, with an occupancy rate of 98 percent. Average rents stand at $1,636 per unit, or $2.19 per square foot.
The decision to sell comes at a time when the local multifamily sector is navigating a mix of challenges and opportunities. Rising interest rates and shifting investor expectations have led to a slowdown in property transactions. So far in 2024, Chicago’s multifamily sales volume has totaled $1.6 billion, a sharp decline from $3.9 billion in 2023 and $5.7 billion in 2022, according to CoStar data.
Despite the sluggish market, some large deals have still been completed. For example, FPA Multifamily recently purchased the nearby 642-unit Reserve at Hoffman Estates — now rebranded as ReNew Poplar Creek — for just over $102 million, making it the highest-priced suburban apartment sale in Chicago this year.
This transaction, less than three miles from Haven Hoffman Estates, highlights ongoing interest in suburban multifamily properties, especially those with potential for making improvements and raising rents.
While market conditions are challenging, Chicago’s multifamily sector remains resilient. Another notable suburban property, The Main in downtown Evanston, has maintained a 97 percent occupancy rate with an average rent of $2,877 per month, and was also recently listed for sale by developer John O’Donnell’s firm Riverside Investment & Development.
With rents for Chicago-area suburban properties growing amid expectations for little supply to be added to the market in coming years as a result of high interest rates delaying development starts, landlords like Tricap and Wolcott are positioning assets like Haven Hoffman Estates to attract buyers looking to capitalize on revenue growth.
— Andrew Terrell
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