Marking the firm’s 13th acquisition in Washington, Pathfinder Partners, a San Diego-based private equity firm specializing in multifamily real estate investments, has announced the $28.15 million ($268,000 per unit) purchase of Sundance – a 105-unit apartment community at 210 27th Avenue in Milton, Wash., a suburban neighborhood just south of Seattle.
According to Mitch Siegler, co-founder and managing director of Pathfinder Partners, Sundance was sold to Pathfinder by the original developer, SEB, Inc. and consists of nine three-story residential buildings and a community building with a clubhouse, leasing office and fitness center. Originally built in 2004, the community has a mix of 18 one-bedroom/one-bathroom units, 42 two-bedroom/one-bathroom units, 24 two-bedroom/two-bathroom units and 21 three-bedroom/two-bathroom units ranging from 725 to 1,160 square feet. Units feature washers/dryers, nine and 10-foot ceilings on the upper floors, electric fireplaces, private decks or patios and walk-in closets. Other highlights include a pool and jacuzzi, community picnic area with BBQs and a playground and 24 detached garages.
Siegler notes that Sundance provides a unique opportunity to operate a high-quality property in a well-established, centrally located Seattle submarket. “The property is very low density at 12.5 units per acre with large floorplans. We plan to improve the common areas to include a new BBQ area, dog park and package locker as well as upgrade the unit interiors – including updated bathrooms and kitchens – and operate Sundance as a stabilized, cash-flowing investment,” Siegler said. “Seattle’s economy continues to be strong, propelled by the technology, aerospace, healthcare and life science sectors, and Sundance’s location is known for its excellent schools with home prices averaging $750,000.”
Sundance is the 13th property in the Pathfinder Income Fund, L.P. (“Fund”), a stabilized multifamily fund open to accredited investors. With a focus on stabilized, income-producing, Class-B apartments, the Fund has acquired approximately 1,500 apartments across six markets in the western U.S. “The Fund’s conservative approach to leverage, bias toward fixed-rate debt and emphasis on cash-flowing properties provides investors with an income-generating, tax friendly investment opportunity with downside protection,” Siegler said.
“There continues to be a tremendous opportunity for investors to take advantage of the ongoing housing supply/demand imbalance by adding multifamily real estate to their portfolios,” he added. “With a stabilized and diversified portfolio of properties with low-cost, fixed-rate debt, the Pathfinder Income Fund provides an attractive and low-risk alternative to the bond market – with superior upside.”
