Pathfinder makes opportunistic investments in defaulted real estate loans and properties, with a focus on multi-family projects.
In addition to seeking opportunities to add value by providing liquidity to selling financial institutions, Pathfinder also adds value through property enhancements, improvements in operations, marketing and property positioning. Generally, we find that financially distressed assets are also challenged operationally as they have frequently been starved for capital and are characterized by deferred maintenance or are otherwise under-marketed or under-managed. They may also be in receivership or have been foreclosed upon by the lenders.
Pathfinder also pursues financial restructuring opportunities for commercial real estate assets. Pathfinder anticipates a considerable need for financial restructurings during the next 24 months, particularly in those geographical areas that saw considerable development and construction activity and experienced rapid price appreciation during the boom times. Among Pathfinder’s target areas for restructurings are California, Arizona, Colorado, Washington and Oregon and, to a lesser extent, Texas and Florida.
Pathfinder also provides financing for troubled commercial real estate projects through its Pathfinder R3™ (Restructuring, Repositioning and Rescue financing) program. Pathfinder R3 works with borrowers to restructure, modify or repurchase commercial real estate loans and properties with bridge financing and/or equity investments.