Article: Investors prepare to dine on distressed properties.(SPECIAL REPORT: REAL ESTATE QUARTERLY)

IT may be tough times in the commercial real estate market, but that's just the kind of situation that appeals to a certain kind of investor--the notorious vultures.

And they're gathering in Los Angeles and Southern California to score some prime deals.

From niche players like Franklin Pacific Finance in Santa Monica to huge players like Orange County's Pimco bond fund, investors are eyeing the region's increasingly troubled commercial real estate market. They are amassing funds in the hundreds of millions of dollars to bid on bank notes for distressed commercial properties, or to buy commercial properties directly from troubled borrowers and owners.

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