Investment in Phoenix multifamily property illustrates the soundness of Pathfinder’s strategy regarding investor exposure to real estate
SAN DIEGO (March 24, 2021) – Pathfinder Partners, a San Diego-based private equity firm specializing in multifamily real estate investments, today announced the sale of Avalon Apartments for $23 million.
Avalon, a 117-unit, seven-building property on 3.48 acres, is a blend of 81 one-bedroom and 26 two-bedroom apartments averaging 827 square feet. During its ownership, Pathfinder enhanced the property’s profile with upgrades and improvements to the façade, landscaping, common areas and unit interiors. Pathfinder’s multifamily investments are primarily concentrated in six target cities – Seattle, Portland, Sacramento, San Diego, Phoenix and Denver.
“The Avalon investment exemplifies the sound nature of our strategy to provide accredited investors with institutional quality investment opportunities and secure income, while producing an attractive total return,” said Mitch Siegler, Co-founder and Managing Director of Pathfinder Partners. “Avalon’s returns exceeded initial expectations and occurred in just three years compared with our planned five-year holding period. Our success creating value illustrates the importance for investors of having an exposure to real estate. We continue to identify opportunities to invest in and increase the value of multifamily properties by renovating, upgrading and improving management, while maintaining affordable rents.”
Avalon was only 76% leased in a submarket with a 95% average occupancy when Pathfinder acquired the property, presenting an immediate opportunity to substantially increase cash flow. Within four months of the acquisition, Pathfinder stabilized operations, bringing Avalon’s occupancy above 90%.
“Our investors appreciate the low risk profile of our funds, solid cash flow, and above-average returns,” said Lorne Polger, Co-founder and Managing Director of Pathfinder. “We are gratified to have stayed true to our core principles and heartened that the strategies we pursued prior to 2020, positioned us and our investors for success during these turbulent times.”
Steven Nicoluzakis and David Fogler of Cushman & Wakefield brokered the transaction.