SCOTTSDALE, AZ - Marking its third Phoenix area acquisition since July, San Diego-based Pathfinder Partners, LLC has purchased the unsold units at Barolo Place, a high-end condominium project at 10757 North 74th St. in Scottsdale, from Zaremba Group, LLC, the original developer. Pathfinder acquired the remaining 16 units in the 65-unit community; the developer sold 49 units from 2007-2011.
Four of the acquired units are complete and 12 are partially finished. Pathfinder will complete the units – ranging from 1,278 to 2,007-square-feet (average of 1,728-square-feet) – by early November, installing alder-wood cabinets, luxury fixtures, granite slab countertops, hardwood and stone flooring, high-end appliances and washer/dryer units. Phoenix-based Old West Builders is the general contractor and the Melanie Sanders Team at ReMax Excalibur in Scottsdale, Ariz., the sales organization.
The Barolo acquisition comes on the heels of Pathfinder’s July acquisitions of 84 luxury condominium units at Dorsey Place in Tempe, Ariz., as well as the purchase of Dobson Springs, a 120-unit apartment project in Mesa, 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 two-story, eight-building Barolo Place is well located at the intersection of North 74th Street and Shea Boulevard.
Polger notes that Pathfinder will dramatically reset the prices from the $550,000 to $600,000 level buyers paid in 2007-2008 to $239,000 to $329,000 today. “The Barolo acquisition reflects Pathfinder’s positive outlook for the Phoenix market and is consistent with our strategy to acquire properties at well below replacement cost, in order to deliver tremendous value to today’s buyers,” Polger said.
Originally built in 2007, Barolo Place features a two-bedroom/two-bathroom unit, ten three-bedroom/two-bathroom units and five three-bedroom/two-and-one-half bath units. Each comes with a two-car, attached garage. The complex features a pool and hot tub. Polger cited the property’s location – just minutes from old-town Scottsdale, within walking distance to many shops and restaurants and in close proximity to theaters, golf-courses, casinos and art museums – as attributes that added to the investment appeal. The community is situated between the 101 and 51 freeways and is just 20 minutes from Sky Harbor International Airport and downtown Phoenix.
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, Arizona, Colorado, Oregon, Washington, Florida, and Oklahoma. Pathfinder is actively seeking investment opportunities in these markets and accelerating its acquisitions in Phoenix.
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.