PORTLAND, OR – Pathfinder Partners, a San Diego-based private equity firm specializing in multi-family home investments, announced the acquisition of FortyOne 11 apartments in Portland, Oregon for $ 27.4 million. The investment was made by Pathfinder Partners Opportunity Fund VIII, L.P. ("Fund VIII"), which was raised in 2020 to make opportunistic multi-family investments.
FortyOne 11 is a 112-unit hotel in an eclectic and vibrant suburb of northeast Portland. Pathfinder will focus on stabilizing the property's operations while improving the residents' experience and tenant loyalty. FortyOne 11 is 76% occupied and provides an immediate opportunity to significantly increase cash flow through improved occupancy and rental income, as well as better reimbursement and cost management.
"FortyOne 11 embodies our strategy for Fund VIII – a well-located multi-family project that had operational problems during the pandemic," said Mitch Siegler, co-founder and chief executive officer of Pathfinder Partners. "With the availability of low-price debt and demographic change, apartment buildings remain an extremely resilient asset class."
In addition to Portland, the Pathfinder Fund VIII invests in Seattle, Sacramento, Southern California, Phoenix and Denver.
"Given the rising costs of forcing millions of potential buyers to remain tenants, there is an imbalance between supply and demand for housing in the US, with more tenants available than rental units," said Lorne Polger, Co-Founder and Managing Director of Pathfinder. "Multi-family houses like FortyOne 11 have been shown to offer higher risk-adjusted returns compared to practically all other types of property and support the strategy of accredited investors to add real estate to their portfolios."
Source: Pathfinder partner