Tricap Acquisitions & Wolcott Group Offer 550-unit Multifamily Near Chicago For Sale

Two Chicago-based real estate firms, Tricap Residential Group and Wolcott Group, have put a 550-unit apartment complex in Hoffman Estates, Illinois, up for sale. The property, named Haven Hoffman Estates, is located at 725 W. Bode Circle in the northwest suburbs of Chicago. JLL brokers are handling the sale of the garden-style complex.

Market Challenges Amid Sluggish Property Sales

The sale comes at a time when the real estate market is sluggish due to rising interest rates and other financial challenges. In the Chicago area, the volume of multifamily property sales has dropped significantly in 2024, reaching $1.6 billion—far below the $3.9 billion recorded in 2023 and $5.7 billion in 2022. Many properties, particularly luxury towers downtown, are being sold for less than their current construction costs.

Comparable Sales and Property Value Estimates

Despite market difficulties, large deals continue to close. FPA Multifamily, a San Francisco-based firm, recently purchased the nearby Reserve at Hoffman Estates, a 642-unit complex, for over $102 million. This property, now known as ReNew Poplar Creek, is located just 3 miles from Haven Hoffman Estates. The sale price for Haven Hoffman Estates remains uncertain, but a source familiar with the property estimates it could sell for around $80 million.

History and Upgrades of the Property

Tricap and Wolcott acquired the property, previously known as Autumn Chase Apartments, in April 2019 for $60.25 million. The deal included assuming an existing loan. Since then, the firms have invested in modernizing many of the units to increase rental rates, though the exact amount spent on renovations remains undisclosed.

Future Renovation and Rental Opportunities

According to JLL's marketing materials, the property still has significant potential for investors. About half of the units have yet to be renovated, offering an opportunity to continue upgrades and further increase rents. The complex is currently 98% leased, with renovated units commanding a rental premium of more than $200 per unit. Asking rents at the property, built in 1970, are $1,636 per unit, or $2.19 per square foot.