3650 Capital Injects $104M Pref Equity Into $455M Aimco Deal

3650 Capital provided $104 million of preferred equity as part of LaTerra Capital Management and Respark Residential’s acquisition of a seven-property, 1,495-unit multifamily portfolio in the Chicago area from Aimco for $455 million.

The assets were already encumbered by $308 million of Fannie Mae agency financing. The article notes agency rules generally restrict subordinate debt behind the capital stack, but allow preferred equity from designated investors such as 3650 Capital after obtaining specific approval.

The portfolio is described as a Chicago-area multifamily investment where rents are rising at the fastest rates in the U.S.