Leon Multifamily and Leon Financial, subsidiaries of Leon Capital Group, announced a $10.76 million preferred equity investment in a Class A apartment community in Naperville, Illinois, marking the company’s entry into the real estate credit market and its first investment in the Midwest.
The investment supports the recapitalization of a multifamily property completed in February 2025 that primarily serves residents aged 55 and older. The community features amenities including a pool, hot tub, golf simulator, fitness center, dog park, community lounges, coffee bar, salon, and a heated parking garage.
The property was developed by a national developer that has completed more than $2 billion of projects and delivered over 10,000 units across 18 states.
Leon said the transaction represents a strategic expansion of its real estate platform into structured credit opportunities amid constrained capital markets. The company believes such investments currently offer attractive risk-adjusted returns.
Located about 30 miles west of downtown Chicago, Naperville is the third-largest city in Illinois and benefits from strong household incomes, a diversified employment base, and demographic trends that support demand for housing aimed at older residents.
Leon executives noted that the property offers downside protection while providing exposure to potential rent growth in one of the country’s strongest suburban markets.
Leon Capital Group operates businesses across financial services, healthcare, real estate, and technology sectors. Originally established as a Texas-based real estate development company, the firm has expanded into a diversified portfolio of businesses operating across multiple industries and geographies.
KEY QUOTES:
“At Leon, we seek investment opportunities with special circumstances that others overlook, and where our deep understanding of both the multifamily market and real estate financing allows us to identify and unlock value. Given the constraints in capital markets, structured credit offers the most compelling risk-adjusted returns and is our highest-conviction allocation of capital today.”
Blake Schroeder, President, Leon Multifamily
“Naperville is one of the highest-performing suburban markets in the country, and there simply are not enough quality options for the 55-plus demographic. This property is representative of the well-built, well-located community our investors want exposure to, offering strong downside protection while positioning us to benefit from continued rent growth.”
Fernando Mendez, Managing Director, Leon Financial
“This investment is precisely what Leon Financial was built to capture. I am confident this is the first of many credit investments that will generate differentiated value for our partners.”
Jeff Salladin, Chief Operating Officer, Leon Financial
