Pathfinder Announces $31.1 Acquisition of Multifamily Community Near Seattle

Expanding its footprint in the Pacific Northwest, Pathfinder Partners, has announced the $31.1 million acquisition of Cedardale – a 126-unit community at 2501 SW 336th St. in Federal Way, Washington, a suburban neighborhood located between Seattle, Tacoma and the Kent Valley.

According to Mitch Siegler, co-founder and managing director of Pathfinder, a San Diego-based private equity firm specializing in multifamily real estate investments, Cedardale marks Pathfinder’s 14th acquisition in Washington and its second acquisition within Pathfinder Multifamily Opportunity Fund IX, LP (“Fund”) – which is focused on opportunistic acquisitions of suburban, value-add multifamily real estate in markets where Pathfinder has significant experience. These markets include Denver, Phoenix, San Diego/Southern California, Sacramento and Seattle.

“Pathfinder has deep experience in Seattle’s Federal Way submarket having previously owned three properties in the area and currently owning a property in the neighboring town of Fife,” Siegler said.  “Cedardale has a low-density, serene ambiance and is walkable to several retail centers, including the adjacent Twin Lakes Shopping Center anchored by Safeway and numerous restaurants and retail stores.”

Cedardale was originally built in two phases from 1981 to 1983 as condominiums, but no units were sold. Now operated as a rental community, the property features mature, lush landscaping – with units featuring wood-burning fireplaces, washer/dryers, dishwashers, stainless steel appliances and private decks or patios. Community amenities include a central clubhouse with a coffee bar and complimentary Wi-Fi, a covered picnic area with BBQs, playground, fenced dog park, sport court with basketball and bocce ball and car vacuum station. Units encompass a mix of 64 one-bedroom/one-bathroom units, 16 two-bedroom/one-bathroom units and 46 two-bedroom/one and one half-bathroom units ranging from 608 to 905 square feet.

“Pathfinder’s Fund IX acquired Cedardale at an attractive cost basis of $247,000/unit with future upside through our value-add business plan. We believe the purchase price is 15-20% lower than peak pricing and 30-35% lower than replacement cost, and we plan to add significant value by modernizing the apartments.” Siegler said. “Seattle’s economy continues to be strong, propelled by the technology, aerospace, healthcare and life science sectors, and Cedardale’s location is known for its strong rental market and ease of accessibility throughout Seattle’s employment centers.”

About Pathfinder Partners

Headquartered in San Diego, Pathfinder Partners was founded by Lorne Polger and Mitch Siegler in 2006 to make opportunistic and value-add real estate investments. Pathfinder has acquired or sold more than $1 billion of properties since inception and currently has more than $877 million income-generating, multifamily real estate assets under management in six mid-tier cities in the western U.S. For more information on the firm, visit pathfinderfunds.com.