Pathfinder Partners has teamed up with the Denver-based developer Pittman Development Group to launch a private equity real estate fund targeting Colorado.
The fund, Pittman Pathfinder Colorado Opportunity Fund, has already acquired a portfolio of seven residential properties from a Colorado regional bank, including 64 condos and townhomes, 108 residential lots and a multi-family development site – primarily in the Denver and Colorado Springs areas.
The fund will look to invest in “any income-producing assets,” said Pathfinder senior managing director and founder Mitch Siegler. It will not target hotels and land.
Siegler declined to comment on how much the fund aims to raise, but stated that both firms “plan to add value to the properties and turn stalled developments into finished communities.”
According to Siegler, Pathfinder is focusing on Colorado because of the state’s diversified economy, stable employment and lower-levels of distress compared to other “sand states” such Arizona, California and Nevada.
Pathfinder has acquired more than $150 million in defaulted commercial real estate loans and real estate-owned properties since the firm was founded in 2006, while Pittman has developed or acquired approximately three million square feet of office, industrial and retail buildings and 4,000 acres of land in Colorado.