$95,000,000+ in commitments to date with eight properties in the portfolio
About the Fund
A stabilized multifamily fund open to accredited investors, the Pathfinder Income Fund continues to seek acquisitions of multi-family apartments while providing a low-risk, income-generating alternative real estate investment vehicle with an emphasis on 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 widen 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 debt leverage
5% annual distribution paid quarterly
13% gross / 10% net IRR
2.7x gross / 2.3x net Equity Multiple
Pathfinder Track Record
From May 2010 to April 2021 we fully-cycled
97 investments, generating the following project-level returns:
Why We Like Apartments
Traditional Fixed Income
In an environment of ultra-low interest rates, the Fund’s 5% current yield is considerably above yields from most government/investment-grade bonds and dividend-paying stocks
Multifamily is a preferred asset class and debt is widely available from a variety of sources
The homeownership rate has declined from 69% to 64% over the past decade, 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 96%.
Breeze Hill Apartments
New 88-unit apartment development in Vista (San Diego County), CA
Creekside Village Apartments
New 41-unit apartment development in Vista (San Diego County), CA
Population grew by 12.7% from 2010 to 2019. Current demand for housing is greater than new supply. Rents are expected to rise 5.3% in 2019 and occupancy remains strong at 95.5%.
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. Apartment rents have increased 6.3% per year since 2010.
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
Summary of Terms
|Capital Committed||$95,000,000 (as of April 2021)|
|Unit Price||$1,094.80 (as of April 1, 2021)|
|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)||2.7x (gross to fund) / 2.3x (net to investors)|
|Annual Income Distributions||Initially 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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