Pathfinder Partners Income Fund, L.P.

A Core-Plus Multifamily Fund

$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.

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

Target Returns

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:

Pathfinder Track Record

Vision

Currently owning seven properties with 800 units across five markets, we intend to grow the portfolio through the acquisition of new properties, including future rollover of existing Pathfinder properties. We have a line of sight on 11 properties with 1,300 units in prior Pathfinder funds that could be acquired by the Income Fund during the next several years.

Why We Like Apartments

Alternative to
Traditional Fixed Income

Pathfinder Income Fund Apartments

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

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

The homeownership rate has declined from 69% to 64% over the past decade, 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

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 96%.

Highlands at Red Hawk
Breeze Hill Apartments

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

Creekside Village Apartments
Creekside Village Apartments

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

Phoenix

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%.

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. Apartment rents have increased 6.3% per year since 2010.

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

Summary of Terms

Capital Committed $95,000,000 (as of April 2021)
Minimum Investment $100,000
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)

Fund Information Request

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