SAN DIEGO, CA - Pathfinder Partners, LLC, a San Diego-based fund manager that makes opportunistic real estate investments, has launched the $100 million Pathfinder Partners Opportunity Fund V, L.P. – a private real estate fund focused primarily on acquiring value-add multifamily and residential real estate in mid-tier cities in the western U.S.
According to Mitch Siegler, senior managing director/co-founder of Pathfinder, “Fund V will target a $100 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 said. The fund will secondarily pursue select redevelopment and ground-up development opportunities and commercial opportunities in its western U.S. 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 said. “We primarily look for small- and mid-sized properties that are below the radar of institutional buyers.”
Ultimately, Siegler said, 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.