Fourth Avenue Capital Expands into Booming Secondary Markets with New Acquisitions

SEATTLE, WA – March 16, 2026 – By Kevin Lee

Fourth Avenue Capital (FAC), a real estate investment firm with headquarters in Seattle and Spokane, has announced a significant expansion of its portfolio with the acquisition of two newly built apartment communities. The deals for Spring Woods in Salem, Oregon, and Silver Star in Kalispell, Montana, add a combined 246 Class A units to the company's holdings, bringing its total to 30 properties across the Pacific Northwest.

The acquisitions underscore a calculated strategy increasingly favored by savvy investors: targeting high-growth secondary markets that demonstrate robust economic and demographic fundamentals, often outpacing more saturated primary metropolitan areas.

A Strategic Pivot to High-Growth Hubs

These acquisitions are not random dots on a map but a direct reflection of a focused investment philosophy. Fourth Avenue Capital is targeting newly constructed properties in markets poised for significant appreciation, a strategy articulated by the firm's leadership.

"Both of these acquisitions align with a core thesis we have of acquiring newly constructed assets below replacement cost in high-growth markets," said Davis Vaughn, Managing Partner at Fourth Avenue Capital. "With limited future supply and larger-than-average floor plans, we believe these properties are well-positioned to achieve outsized rent growth over the long term."

The concept of acquiring assets "below replacement cost" is particularly potent in the current economic climate. With construction material costs and labor expenses remaining elevated, purchasing a completed asset for less than it would cost to build from scratch today provides a crucial competitive advantage and a buffer against market volatility. This approach allows the firm to enter burgeoning markets with high-quality inventory at a favorable cost basis, positioning it to capitalize on future rent growth driven by strong local demand.

Salem: Fueling Growth with Economic Stability

The acquisition of Spring Woods, a 174-unit community completed in May 2025, plants FAC's flag firmly in Oregon’s state capital. The property features a mix of one-, two-, and three-bedroom apartments with high-end finishes like quartz countertops and stainless steel appliances, catering to a growing professional class.

Salem's appeal lies in its potent combination of growth and stability. While the press release noted its rank as Oregon's second-fastest-growing metro for jobs from 2023-2024, deeper analysis reveals a resilient economic engine. The Salem metropolitan area recovered from the pandemic's economic shock faster than its larger neighbors, Portland and Eugene. In the year leading up to December 2025, the Salem MSA added approximately 4,500 jobs, a 2.4% increase, signaling sustained momentum.

This growth is anchored by a formidable and stable employment base. As the state capital, Salem is home to over 20,000 government positions that provide a consistent economic floor, insulating the region from the sharp swings of more volatile industries. This is complemented by a major private-sector presence in healthcare, led by Salem Health, and a robust educational sector with institutions like Willamette University. For real estate investors, this translates into a reliable tenant base and consistent demand for quality housing like that offered at Spring Woods.

Kalispell: Capturing the 'Boomtown' Influx

If Salem represents stable growth, Kalispell represents explosive expansion. The acquisition of Silver Star, a 72-unit community completed in 2024, gives FAC a foothold in one of the fastest-growing regions in the United States. The property is unique in the Kalispell market, offering exclusively large three-bedroom, two-bathroom layouts averaging 1,205 square feet, complete with premium features like gas fireplaces and large kitchen islands.

The demographic trends in Flathead County, where Kalispell is the primary city, are staggering. Between 2020 and 2023, Kalispell's population surged by nearly 20%, a growth rate that dwarfs the national average. Since the 2020 census, the city's population has expanded by over 35%. This influx is not driven by natural growth; research indicates that 99% of the county's population increase comes from out-of-state in-migration, a clear sign of the area's powerful draw for those seeking a different lifestyle.

This rapid population boom creates intense pressure on the local housing market. The demand for rental units, particularly larger, family-friendly homes that can accommodate remote workers or relocating households, far outstrips the available supply. Silver Star’s oversized floor plans and high-end amenities are perfectly tailored to this demographic, positioning the property to command premium rents and maintain high occupancy in a supply-constrained environment.

Building a Pacific Northwest Powerhouse

With these latest acquisitions, Fourth Avenue Capital is solidifying its position as a formidable player in Pacific Northwest real estate. The firm now manages a portfolio valued at over $500 million, encompassing nearly 2,000 units, with a development pipeline of over 500 more units in the works.

By deliberately targeting secondary markets like Salem and Kalispell, FAC is executing a sophisticated strategy that avoids the hyper-competitive, high-priced environments of primary coastal cities. Instead, the firm is building a geographically diverse and economically resilient portfolio by identifying and investing in the next wave of high-growth American cities. These transactions are more than just additions to a balance sheet; they represent a clear and calculated vision for dominating the multifamily landscape across the Pacific Northwest.