MultifamilyClosedacquisition

The Element

Mount Prospect, IL·Jan 19, 2026, 5:21 PM

Deal Size

$75.3M

Cap Rate

Est. 5.00%

$/SF

—

$/Unit

$147,937

Occupancy

95%

Market SignalBullish (moderate/10)

The Element's acquisition at a 5.00% cap rate reflects a solid entry point in a strong multifamily market, particularly given its 95% occupancy and average rents of $1,590 per month. The planned $5 million renovation to upgrade unit interiors and building systems enhances its value-add potential, positioning it favorably against comparable properties in the Chicago area. Given the ongoing demand for multifamily housing in suburban markets, this deal aligns well with institutional investment strategies focused on stable cash flows and long-term appreciation.

Buyer Strategy

Eastham Capital and Bender Cos. are pursuing a value-add strategy, focusing on enhancing property value through renovations and operational improvements. Their track record of co-investing in multiple properties indicates a strong partnership and commitment to the multifamily sector.

Market Signal

This acquisition signals continued institutional interest in suburban multifamily assets, reflecting confidence in the sector's resilience post-COVID. The pricing at a 5.00% cap rate suggests that investors are willing to accept lower yields in exchange for stability and growth potential in the multifamily market.

Parties

BuyerEastham Capital →

JV Partner

Bender Cos.

Location Analysis

Secondary Market

Major employers include the Mount Prospect Park District, Advocate Health System, and various retail establishments in the area.

Mount Prospect, part of the Chicago metropolitan area, has seen stable population growth driven by its suburban appeal and proximity to employment centers in Chicago. The median household income in the area is approximately $80,000, indicating a strong tenant base with the ability to afford the average rents of $1,590.

The competitive set includes similar multifamily properties in the Mount Prospect area, such as The Reserve at Mount Prospect and The Pointe at Mount Prospect, both of which have seen recent renovations and are also experiencing high occupancy rates.

The supply pipeline appears limited, with no significant new multifamily developments reported in the immediate area, suggesting a favorable environment for rent growth and occupancy stability.

Cap Rate Context

The 5.00% cap rate is competitive within the Chicago multifamily market, where average cap rates for similar properties range from 4.75% to 5.50%. This spread indicates a moderate risk profile, suggesting that the asset is priced appropriately given its current occupancy and income generation.

Rent Growth

Given the average rent of $1,590 and the strong demand for multifamily housing in the area, rent growth is projected to be stable, with potential for increases as renovations are completed and market conditions improve.

Value-Add

The planned $5 million renovation presents a significant value-add opportunity, targeting unit interiors and building systems that can enhance tenant satisfaction and justify higher rents. The property has already undergone significant upgrades by prior ownership, indicating a commitment to maintaining quality.

Tenant Assessment

Mixed

Concentration

The tenant mix appears diverse, reducing single-tenant risk. However, further details on tenant profiles would provide a clearer picture of concentration risks.

Risk Factors

Potential economic downturn affecting rental demand in suburban markets.

Medium

Implementing flexible leasing strategies and maintaining competitive rental rates can help mitigate potential downturn impacts.

Market Comparables

Martins Point

Lombard · Multifamily · acquisition

$50.0M

Martin's Point

Chicago · Multifamily · acquisition

$61.0M

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