FPA Multifamily Buys Naperville Apartments

One of the biggest suburban apartment landlords in the U.S. and one of the most active dealmakers in the Chicago area spent nearly $23 million to acquire a vintage Naperville asset.

A San Francisco-based FPA Multifamily affiliate founded by Greg Fowler bought the Sherry Apartments at 1821 South Washington Street in one of the city’s most populous suburbs, public records show.

The seller, Chicago-based Legend Group, held the 164-unit complex for 20 years since acquiring it for $12.6 million in 2002. The firm is led by Ralph Robbins, Sheldon Ashman, and Allen Shechtman. Neither party responded to requests for comment.

The exact price of the sale to FPA was $22.7 million and broke down to a little more than $138,000 per unit.

While it’s a more minor deal than FPA usually makes in the Chicago area, the three-story property built in 1975 fits the mold of many of the firm’s purchases. The company has a penchant for buying older apartment complexes, holding them for a few years while making some upgrades to units, and then selling them for added value.

A construction mortgage signed by FPA chairman Michael Earl for an $18.5 million loan against the Sherry Apartments from Wisconsin-based WaterStone Bank suggests the new buyer plans to invest in renovation work on the property.

In August, FPA sold a 571-unit Bensenville apartment complex called, ReNew on York, built in 1974, for $106 million after buying the property for $75 million in 2019. DRA Advisors was the buyer.

And earlier last year, FPA also sold the 662-unit Rolling Meadows for $111 million after spending $72 million to buy it in 2017. Within Chicago proper, FPA also recently purchased the 304-unit West77 in the River North area at 77 West Huron Street from L&B Advisors for $89 million, handing a rare slight loss in value on multifamily in the Chicago area to the seller L&B Advisors, who had spent $90 million to buy the building in 2011.

FPA’s series of transactions have accounted for around 130,000 units across the nation since it was launched nearly 30 years ago, according to its website.