$170,000,000+ in commitments; 12-property portfolio with 1,383 units
About the Fund
A stabilized multifamily apartment fund open to accredited investors, the Pathfinder Income Fund is a low-risk, income-generating real estate investment vehicle with downside protection. The Fund’s conservative approach to leverage, bias toward fixed-rate debt and emphasis on cash flow provide investors with a value-added, income-producing, tax friendly opportunity to increase their exposure to real estate.
Want to learn more about generating income, creating value and diversifying your portfolio?
Overview of Pathfinder
Seasoned fund manager with excellent track record
Conservative underwriting approach; institutional-level asset management
Outstanding reputation, deep relationships, and prior fund portfolio drive robust deal flow pipeline
Disciplined and thoughtful use of leverage
4%-5% annual distribution paid quarterly
13% gross / 10% net IRR
2.5x gross / 2.0x net Equity Multiple (Remaining Fund Term)
Pathfinder Track Record
From May 2010 to Sept 2022 we fully-cycled
109 investments, generating the following project-level returns:
Why We Like Apartments
Traditional Fixed Income
In today’s lower interest rate environment, the Fund’s 4-5% current yield is above yields from most government/ investment-grade bonds and dividend-paying stocks.
Predictable Income /
Strong Inflation Hedge
Multifamily real estate offers predictable cash flow, is not highly correlated to traditional equity or fixed income investments, offers strong downside protection and provides an excellent hedge against inflation.
Homeownership has declined from 69% in 2006 to 65% in 2022 causing millions of former homeowners to rent.
The 73 million Millennials, a generation now larger than the Baby Boomers, are delaying marriage and family formation and value mobility, driving them to rent much longer than previous generations.
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Pathfinder Target Markets Benefiting from Robust Population and Job Growth
One of the most desirable and supply-constrained housing markets in U.S. Solid job growth creating upward pressure on rental rates and home prices. Occupancy remains high at 97%.
New 31 unit townhome project in Ramona (San Diego County), CA
Breeze Hill Apartments
New 88-unit apartment development in Vista (San Diego County), CA
New 41-unit apartment development in Vista (San Diego County), CA
Population grew by 22% from 2012 to 2021. Current demand for housing is greater than new supply. Since 2012, rents grew 102% (10.2%/year). Occupancy remains strong at 96%.
Boutique, 76-unit, renovated apartment property near Phoenix’s Arizona State University
Well-located, 144-unit, renovated apartment community in Tempe
Renovated, 224-unit apartment property in Mesa (metro Phoenix)
Strong population and job growth propelling large increases in household income. Since 2012, apartment rents increased 75% (7.5%/year).
156-unit apartment community located in high-demand Denver Tech Center (Denver), CO
Highlands at Red Hawk
Recently constructed 56-unit apartment development in Castle Rock (Denver), CO
Echo Ridge at North Hills
Well-located 168-unit apartment development in Northglenn (Denver), CO
Renovated, 100-unit community in Aurora (Denver), CO
Vacancy rate is 3.3% as of September 2022, reflecting extremely low supply growth. Sacramento ranks in the top U.S. cities for technology job growth.
Well-located 195-unit, apartment community in high-growth Sacramento, CA market
Vacancy rate, as of September 2022, is 3.8%, and the metro area continues to experience high rent growth. Since 2012, apartment rents have increased 70% (7.0%/year). Portland benefits from a resilient economy with a focus on technology, real estate, sports apparel and various financial/professional services.
Low density 104-unit apartment community located in high-demand Vancouver, WA market (metro Portland)
Summary of Terms
|Capital Committed||$170,000,000 (as of Sept. 2022)|
|General Partner's Commitment||$19,000,000|
|Unit Price||$1,488.58 (as of Sept. 2022)|
|Investment Horizon||Fund term through 2029 (subject to extension)|
|Target Internal Rates of Return (gross/net)||13% (gross to fund) / 10% (net to investors)|
|Target Equity Multiple (gross/net) (Remaining Fund Term)||2.5x (gross to fund) / 2.0x (net to investors)|
|Annual Income Distributions||Currently 4%-5%, paid quarterly|
|Preferred Return||7% Preferred Return; Catch-up to General Partner|
|Distribution Splits (Limited Partners/General Partner)||
90% / 10% on Operating Income
85% / 15% on Capital Events (Sales and Refinance)
|Management Fee||1.25% per annum|
|Acquisition Fee||1.0% (waived for Rollover Properties)|
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