Jeff Aeder’s JDI tosses $34M into suburban townhomes bet

Jeff Aeder’s firm focuses on deploying real estate debt, but he also senses the time of the rental home has arrived.

Aeder heads Chicago-based JDI Realty, which paid $34 million for 164 townhomes spread across Chicagoland to a venture of Ken Buckman, a suburban businessman who built up the portfolio over the past 14 years, according to the buyer. The price works out to $207,000 per unit.

The properties are in more than a dozen towns and cities in Lake, Kane, McHenry, Will and Grundy counties. Units available for rent now range from $2,450 a month for a three-bedroom, 1,665-square-foot home in Hampshire, up to nearly $3,200 a month for a similarly sized unit in Elgin.

“Families are choosing to rent versus buy, because the market to buy homes has high interest rates and prices — it’s economics,” JDI’s Maggie DeWoskin said. “These townhomes are a very good fit for people who are not in a position to buy a house today, and for families with kids in good suburban school districts.”

The portfolio’s geographic diversity was also alluring, mitigating the risk that rent growth will slow all at once, compared to an apartment complex with as many units in one location, said Cushman & Wakefield’s Susan Tjarksen, who represented the seller.

“It was sizable enough to attract regional players,” Tjarksen said, adding that other potential buyers showed interest. “JDI was very aware of the individual counties and how real estate taxes play in each, and was easily able to put boots on the ground during due diligence.”

Buckman’s firm Rainy Investments started acquiring townhomes in the collar counties surrounding Cook County more than a decade ago and decided it was time to cash out after three years of strong rent growth, Tjarksen said.

JDI’s other recent deals include issuing a $34 million debt package to Latsko Interests’ high-end retail portfolio on Chicago’s Gold Coast.

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