Pathfinder Partners Income Fund, L.P.

A Core-Plus Multifamily Fund

$163,000,000+ 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

Target Returns

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 June 2022 we fully-cycled
108 investments, generating the following project-level returns:

IRR Chart July 2022

Vision

Currently owns 12 properties with 1,383 units across five markets and is expecting to close additional acquisitions within the next year. We plan to grow the portfolio through acquisitions and have a pipeline of seven properties with 795 units in prior Pathfinder Funds that could be acquired by the Income Fund from ‘22-’25.

Why We Like Apartments

Alternative to
Traditional Fixed Income

Pathfinder Income Fund Apartments

In an environment of ultra-low interest rates, the Fund’s 4-5% current yield is considerably above yields from most government/investment-grade bonds and dividend-paying stocks

Availability of
Low-Cost Debt

Multifamily Income Fund

Multifamily is a preferred asset class and debt is widely available from a variety of sources

Declining
Homeownership

Pathfiner PArtners Real Estate Income Fund

Homeownership has declined from 69% in 2006 to 65% in 2022 causing millions of former homeowners to rent

Favorable
Demographics

Pathfiner Partners Income Fund Demographics

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

San Diego

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%.

Paseo Village
Paseo Village

New 31 unit townhome project in Ramona (San Diego County), CA

Highlands at Red Hawk
Breeze Hill Apartments

New 88-unit apartment development in Vista (San Diego County), CA

Creekside Village Apartments
Creekside

New 41-unit apartment development in Vista (San Diego County), CA

Phoenix

Population grew by 18% from 2011 to 2020. Current demand for housing is greater than new supply. Since 2012, rents grew 102% (10.2%/year). Occupancy remains strong at 96%.

Aria Apartments
Aria Apartments

Boutique, 76-unit, renovated apartment property near Phoenix’s Arizona State University

Talavera Apartments
Talavera Apartments

Well-located, 144-unit, renovated apartment community in Tempe
(metro Phoenix)

Maddox Apartments
Maddox Apartments

Renovated, 224-unit apartment property in Mesa (metro Phoenix)

Denver

Strong population and job growth propelling large increases in household income. Since 2012, apartment rents increased 75% (7.5%/year).

Chestnut Apartments
Chestnut Apartments

156-unit apartment community located in high-demand Denver Tech Center (Denver), CO

Highlands at Red Hawk
Highlands at Red Hawk

Recently constructed 56-unit apartment development in Castle Rock (Denver), CO

Echo Ridge at North Hills
Echo Ridge at North Hills

Well-located 168-unit apartment development in Northglenn (Denver), CO

V-Esprit Apartments
V-Esprit Residences

Renovated, 100-unit community in Aurora (Denver), CO

Sacramento

Vacancy rate, as of November 2021, is 2.7%, reflecting extremely low supply growth. Sacramento ranks in the top U.S. cities for technology job growth.

Charleston Apartments
Charleston Apartments

Well-located 195-unit, apartment community in high-growth Sacramento, CA market

Portland

Demand for housing in Vancouver has been driven by strong population growth and a favorable business climate which includes zero corporate or personal income tax. The population has grown 29% since 2010.

The Passage
The Passage

Low density 104-unit apartment community located in high-demand Vancouver, WA market (metro Portland)

Summary of Terms

Capital Committed $163,000,000 (as of June 2022)
General Partner's Commitment $19,000,000
Minimum Investment $100,000
Unit Price $1,498.37 (as of June, 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) 2.7x (gross to fund) / 2.3x (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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