Multifamily Supply Still Anemic
With its recent buy of the 35-unit 415 6th Ave in Downtown Tacoma, California-based Pathfinder Properties has now made six acquisitions in Washington, including multifamily properties in Capitol Hill, Federal Way, and Kirkland. Pathfinder senior managing director Lorne Polger tells us the current construction boom isn’t dissuading the company from looking for more. "If you look at historic building trends, the boom still doesn’t backfill the almost complete lack of construction in the years from 2008 to 2011,” Lorne says. Lorne, an avid biker, is snapped with his friend Albert Gross on the first morning of Al’s bike ride across America.
Supply isn’t the only encouraging factor, Lorne adds. Millennials are going to continue to come out of the woodwork—that is, move out of their parent’s homes—making Seattle and Tacoma well positioned for higher multifamily occupancy, he says. Built in 2007, 415 6th Ave—which is 100% leased—was going to be condos, but the recession crushed those plans. Pathfinder acquired the property through a court-appointed receivership sale from a regional bank, and Lorne says it will continue to operate it as rental apartments while making upgrades to drive rents.