CEP Multifamily Fund II

Asset type: Apartment · Location: Everett, Washington

Fund II will acquire 3 to 5 multifamily assets in the Pacific Northwest. CEP Multifamily is a seasoned Pacific Northwest-based real estate sponsor with a 20-year track record of under-promising and over-delivering for our investors. Our firm is built on a foundation of operational excellence in the multifamily space. We leverage this expertise to execute a market cycle agnostic core-plus investment strategy. This strategy focuses on achieving Asset Management Alpha by maximizing operational efficiencies to deliver balanced returns consisting of quarterly cash flow distributions and long-term asset appreciation. CEP Multifamily Fund II was created to take advantage of current market conditions: Depressed values, diminishing supply and increasing demand. Rising interest rates and the looming multifamily loan maturity wall will enable us to acquire newer vintage assets well back of replacement cost with neutral-to-positive financial leverage. Construction starts are down 86% since the peak in 2022, which is going to result in significant supply constraints in 2026-2027. Thus, we can make strong basis buys today near the bottom of the market and then take advantage of outsized rent growth in the second half of the decade. This market dislocation will drive tremendous long term asset appreciation. Investors that take advantage of these stressful conditions will realize robust returns as the financial markets stabilize and begin to price assets correctly. Fund II will execute CEP Multifamily’s core plus strategy to exploit current market conditions to deliver superior risk adjusted returns for our investors.