A PATH FROM DISTRESS
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|We could understand if Pathfinders Partners senior managing director Mitch Siegler was feeling a bit giddy (and not just from hiking to higher than 10,800 feet). The firm just closed its third opportunity fund, and Mitch tells us a fourth—$100M—is in the works. Two acquisitions were made recently in the $57.5M third fund, its seventh and eight of the year, both with partner Bruckal Properties: Wellshire Arms, a 107-unit apartment property in Denver, and Le Park apartments, a 40-unit complex in Long Beach. Mitch expects the fund?s capital to be fully deployed this year. The fourth fund will follow a similar strategy (if it ain't broke don't fix it): acquiring distressed real estate and defaulted loans. (Correction: If it's broke, acquire it.)|
|Located in Bixby Knolls, Le Park was built in 1948 and will be renamed Bixby Park Apartments. Mitch, a corporate finance and M&A guy, and Lorne Polger, a real estate lawyer, co-founded Pathfinder in 2006, one of the earlier entrants in the distressed asset arena. It was slower in the beginning because it took time for the market to normalize, ?and for the banks to become willing sellers to people like us at prices that made sense.? However, Pathfinders? early start paid off—now that the market is clearing and people are selling, ?we're one of the groups that are seen as a very credible buyer.|