FPA Multifamily's 758-unit ReNew Wheaton Center in Chicago Hits the Market

FPA Multifamily, a prominent California-based real estate investor, is marketing a 758-unit residential complex, ReNew Wheaton Center, in the Chicago area. This marks their latest major offering in the region. The six-building complex, which includes two 20-story towers, is located at 1 Wheaton Center in Wheaton. JLL’s Kevin Girard, Mark Stern, and Zachary Kaufman are handling the listing.

Overcoming Market Challenges

The multifamily investment sector has faced difficulties due to rising interest rates and a general slowdown in property sales. However, FPA is aiming to attract buyers by offering "accretive assumable financing," which allows a buyer to take over the existing loan at a lower interest rate. This financing strategy has gained traction in the Chicago market recently, with successful transactions using similar loan structures.

Comparable Sales in Chicago

Recent examples of Chicago properties sold with assumable financing include the $31 million sale of the MODE Logan Square Apartments and the $94 million deal for the Haven on Long Grove in Aurora. Both used assumable interest rates to secure buyers in a challenging market environment.

FPA's Assumable Financing Strategy

FPA itself has leveraged assumable loans in its recent acquisitions, such as the purchase of the 642-unit Reserve at Hoffman Estates for just over $102 million in July. This acquisition included an $80 million loan at a 4.52 percent interest rate, illustrating how FPA is using creative financing solutions in the current market.

History and Performance of ReNew Wheaton Center

FPA initially purchased ReNew Wheaton Center, previously called Wheaton Center, for $131 million in 2018. The complex, which was originally built in 1972, has maintained a strong occupancy rate of 96 percent. Additionally, rents have steadily increased, with new leases rising by 9 percent and renewals by 5 percent, according to JLL.

Notable Transactions by FPA in Chicago

This sale is part of FPA's active presence in the Chicago market. Earlier this year, the firm made headlines with a $144 million purchase of a 500-unit tower at 1326 South Michigan Avenue in the South Loop, the largest residential deal in Chicago in 2024. FPA has also acquired the 267-unit Seneca tower in Streeterville and the 558-unit Westmont Village in the western suburbs, further expanding its portfolio in the area.