Carrie Rossenfeld | GlobeSt.com
Pathfinder Partners is bullish on multifamily and residential development. The San Diego-based fund manager recently announced the initial closing of Pathfinder Opportunity Fund V—a private real estate fund focused on acquiring multifamily and other residential real estate, which launched in November 2014—and the fact that investors committed approximately $30-million to the initial closing. With a target fundraise of $100 million to $150 million, the fund will remain open to new investors through December.
We spoke exclusively with Pathfinder’s senior managing director/co-founder Mitch Siegler about the firm’s strategy for Fund V, the headwinds and tailwinds influencing the multifamily and residential sectors and where the greatest opportunities lie for investment in these categories in the San Diego market.
GlobeSt.com: What is your firm’s current strategy for Fund V?
Siegler: This fund builds on a team that started in 2006 when we created the firm. We have found tremendous opportunity in the wake of the financial crisis as properties were being sold by financial institutions, banks and CMBS special servicers. The market is morphing to a stage we call “fatigued owners.” They didn’t lose their properties, but they’re eight to 10 years older and have either had health issues or passed away and their estates are dealing with these real estate issues. The properties add themselves to our value and transformational approach. By infusing capital into these properties, we’ve demonstrated an ability to dramatically improve their financial performance through increased rent and better management. It’s where distressed opportunities meet a value-add situation, and we can capitalize on the fatigue that has been a byproduct of the financial crisis. Read more