PHOENIX, AZ - Marking its second acquisition in Arizona in a week, San Diego-based Pathfinder Partners, LLC – in a partnership with Arizona- and British Columbia-based Bruckal Properties and its affiliate New Summit Partners – has purchased Dobson Springs Apartments in an REO acquisition from an affiliate of Wells Fargo Bank. The 120-unit complex is located at 1325 West Guadalupe Road in Mesa, Ariz.
The Dobson Springs purchase comes on the heels of Pathfinder’s July 12 acquisition of 84 high-end condominium units at Dorsey Place in Tempe, Ariz.
According to Lorne Polger, senior managing director of Pathfinder, which specializes in making opportunistic investments in distressed real estate assets and defaulted loans, the three-story, five-building Dobson Springs complex is 96% occupied, with Sunrise Management tapped as the property manager. “The Dobson acquisition reflects Pathfinder’s positive outlook for the region’s apartment market and our view that prices for multifamily housing in Phoenix are at or near bottom,” said Polger.
Dobson Springs was originally built in 1980 and 30 of the units were remodeled in 2009. The owners plan to complete the renovation on the remaining 90 units over the next several quarters. The community features 18 one-bedroom/one-bath, 600-square foot units and 102 two-bedroom/two-bath, 900-square foot apartments. Each unit includes a private balcony or patio, washer/dryer and oversized interior closets. Amenities include a pool and clubhouse, several barbecue areas and 188 parking spaces.
The property was acquired for $5.4 million and Pathfinder plans to infuse about $500,000 in upgrades, new carpeting, upgraded hardware/fixtures, high-end countertops and cabinetry and other finishes in the un-remodeled units.
Polger cited the property’s location, within walking distance to many shops and restaurants as well as proximity to Dobson Ranch Park, a 17.3-acre recreational hub with sports facilities, a lake and golf course, as attributes that added to the investment appeal. The community is also situated near U.S. 60 and Loops 101 and 120, as well as two major airports: Phoenix-Mesa Gateway and Falcon Field.
Since its inception in 2006, Pathfinder has acquired more than $350 million in defaulted commercial real estate loans and REO properties and currently owns and operates more than 1,200 units and several hundred thousand square feet of office space in California, Colorado, Arizona, Oregon, Washington, Florida and Oklahoma. Pathfinder is actively seeking investment opportunities in these markets and accelerating its acquisitions in Arizona.
Headquartered in San Diego, Pathfinder Partners was founded by Lorne Polger and Mitch Siegler in 2006 to make opportunistic investments in distressed real estate assets and defaulted loans, with a focus on multifamily real estate projects. In addition to seeking opportunities to add value by providing liquidity to selling financial institutions, Pathfinder also seeks to maximize value through property enhancements, improvements in operations, marketing and property positioning and other strategies.