$174,000,000+ 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 December 2023 we fully-cycled
110 investments, generating the following project-level returns:
Why We Like Apartments
Alternative to
Traditional Fixed Income
In today’s lower interest rate environment, the Fund’s 4-5% current yield is comparable to most government / investment grade bonds and dividend-paying stock.
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.
Availability of
Low-Cost Debt
Multifamily is a preferred asset class and debt is widely available. Current portfolio is financed with fixed rate debt at a blended interest rate of 3.2%.
Declining
Homeownership
The homeownership rate has declined from 66% to 64% over the past decade, causing millions of former homeowners to rent.
Favorable
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 95%. Source: CoStar.
Paseo Village
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
Creekside
New 41-unit apartment development in Vista (San Diego County), CA
Phoenix
Population grew by 1.9% from 2014 to 2023. Current demand for housing is greater than new supply. Since 2014, rents grew 5.2%. Occupancy remains strong as 93%. Source: CoStar
Aria Apartments
Boutique, 76-unit, renovated apartment property near Phoenix’s Arizona State University
Talavera Apartments
Well-located, 144-unit, renovated apartment community in Tempe
(metro Phoenix)
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 3.7% since 2014. Source: CoStar
Chestnut Apartments
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
V-Esprit Residences
Renovated, 100-unit community in Aurora (Denver), CO
Sacramento
Occupancy rate is 95% as of February 2024, reflecting extremely low supply growth. Sacramento ranks in the top U.S. cities for technology job growth. Source: CoStar
Charleston Apartments
Well-located 195-unit, apartment community in high-growth Sacramento, CA market
Portland
Vacancy rate, as of March 2024, is 7.0%. Since 2014, apartment rents increased 3.5%/year. Portland benefits from a resilient economy with a focus on technology, real estate, sports apparel, and various financial/professional services. Source: CoStar.
The Passage
Low density 104-unit apartment community located in high-demand Vancouver, WA market (metro Portland)
Summary of Terms
| Capital Committed | $174,000,000 (as of December 31, 2023) |
| General Partner's Commitment | $19,000,000 |
| Minimum Investment | $100,000 |
| Unit Price | $1,370.12 (as of September 30, 2023) |
| 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 | Initially 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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