Eastham Capital Buys $76 Million Suburban Chicago Apartments

Eastham Capital has expanded its Midwest portfolio by acquiring a rental property in the Chicago suburb of Hoffman Estates with plans to invest in renovations.

The Florida-based firm paid Tricap Residential Group and Wolcott Group just under $76 million for the 550-unit Haven Hoffman Estates, the Chicago Business Journal reported. The deal closed on Jan. 31 for a little over $138,000 per unit.

The property, at 725 West Bode Circle, will be renamed Hoffman Hills Apartments following a $6.5 million renovation plan. The renovations will cover unit interiors, exterior improvements and updates to amenities, which include a swimming pool, a clubhouse, a fitness center, work-from-home suites and an outdoor dining area.

Eastham, led by co-founders and managing partners Matthew Rosenthal and Eric Silverman, acquired a majority stake in the property through its Eastham Capital Fund VI. Chicago’s Bender Companies, a frequent partner of Eastham, will manage the property, which is 96 percent occupied with an average rent of $1,349.

Eastham put about $50 million into multifamily acquisitions last year, including two properties in Vernon Hills and Rogers Park, Rosenthal said. It is planning more apartment buys this year.

Tricap, led by founder and CEO Bryan Pritchard and Wolcott Group purchased Haven Hoffaman Estates in 2019 for $60.25 million, or about $109,500 per unit. They have attempted to sell the seven-story complex a couple of times. It was listed in January 2022 and this past September.

The sale comes during a challenging time for Chicago’s multifamily market. Increased interest rates and shifting investor expectations have slowed property transactions.

Chicago’s multifamily sales volume was $1.6 billion from January to September, down from $3.9 billion in 2023 and $5.7 billion in 2022, according to CoStar. The city is expected to deliver fewer than 300 new multifamily properties downtown this year, one of the smallest numbers in the last two decades.

— Andrew Terrell