SAN DIEGO—Locally based Pathfinder Partners LLC has launched a $100-million fund called Pathfinder Partners Opportunity Fund V LP. The private real estate fund will focus primarily on acquiring value-add multifamily and residential real estate in mid-tier cities in the western US.
According to Mitch Siegler, senior managing director/co-founder of Pathfinder, “Fund V will target a $100-million to $150-million raise and build on Pathfinder's track record of having acquired about half a billion dollars of real estate assets in 75 transactions since its inception. Pathfinder has gone 'full-cycle' on 32 of those properties—generating net fund-level internal rates of return in excess of 20% on those investments.”
The goal of the fund is to capitalize on the best investment opportunities for residential real estate investments—both rental and for sale – in San Diego, Denver, Phoenix, Seattle and Portland, among others cities, Siegler adds.
The fund will secondarily pursue select redevelopment and ground-up development opportunities and commercial opportunities in its western US target markets.
“Our focus is on well-located properties in cities with diversified economies, growing populations, educated workforces, strong educational and technology components and solid transportation infrastructure and recreational and cultural activities,” he says. “We primarily look for small- and mid-sized properties that are below the radar of institutional buyers.”
Ultimately, Siegler says, the strategy is to “add considerable value and transform a property quickly—strategically investing capital in quality projects acquired from distressed or fatigued ownership which have previously been undermanaged and which we can reposition to generate superior returns for our investors.”
This is the firm's fifth broad-based opportunistic fund; Pathfinder has also raised separate funds targeting single-family rental aggregation and luxury home repositioning strategies.
In other recent Pathfinder news, the company just recently completed the purchase of 14 luxury single-family homes near the Sunset Strip in Hollywood. Pathfinder intends to rehabilitate the homes in a project that will cost $50 million, including the aggregate cost to acquire the properties. The purchase was funded through Pathfinder's $12-million Lux Home Fund and with capital from prior funds. The purchase also aligns with the closing of the Lux Home Fund.
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