Dornoch Holdings forms fund for special situations.

Dornoch Holdings LLC of Morristown, New Jersey, has formed the Dornoch Opportunity Fund, L.P., a registered fund that provides capital for investment in a variety of special situation real estate opportunities.

Dornoch will focus on the acquisition and repositioning of distressed residential and commercial properties, both existing buildings and vacant land, in the metropolitan New York area and New Jersey.

"We are the problem solvers," said Frank Macios, managing director, who founded the company with Glen Fishman.

"In addition to outright acquisitions and repositionings, we work as a joint venture opportunity partner allowing the current owner to retain some involvement in the project."

Properties will be acquired through non-traditional sources, including bankruptcies, private/public partnerships in conjunction with municipalities and special situation workouts, as well as traditional methods, such as real estate brokerage firms and other public/private offerings. Utilizing a one- to two-year event horizon, Dornoch will maximize values through rezoning, redevelopment, resolution of environmental issues or aggregation of adjacent parcels.

"We acquire high-risk projects, not trophy properties, and then carve away the risk through our real estate expertise, local market knowledge and financial resources," remarked Fishman, managing director. "Our business is risk reduction."