$175,000,000+ in commitments; 13-property portfolio with 1,502 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
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 January 2025 we fully-cycled
111 investments, generating the following project-level returns:
Why We Like Apartments
Alternative to Traditional Fixed Income / with Upside
The Fund's 6% current yield is comprable to yields from many government / investment-grade bonds and dividend paying stocks with the benefit of tax-sheltering the income through depreciation; total returns should be enhanced from capital appreciation.
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.
Portfolio Financed with Fixed-Rate Debt at About Half of Current Rates
Weighted average, fixed rate debt on portfolio at a blended interest rate of just 3.4%.
Declining
Homeownership
The homeownership rate has declined from 69% to 66% 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 submarket
Breeze Hill Apartments
New 88-unit apartment development in Vista submarket
Creekside
New 41-unit apartment development in Vista submarket
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% annually. Occupancy remains strong as 91%. Source: CoStar
Aria Apartments
Boutique, 76-unit, renovated apartment community
Talavera Apartments
Well-located, 144-unit, renovated apartment community in Tempe submarket
Maddox Apartments
Renovated, 224-unit apartment property in Mesa submarket
Denver
Strong population and job growth propelling large increases in household income. Apartment rents have increased 3.5% annually since 2014. Source: CoStar
Chestnut Apartments
156-unit apartment community located in high-demand Denver Tech Center submarket
Highlands at Red Hawk
Recently constructed 56-unit apartment development in Castle Rock submarket
Echo Ridge at North Hills
Well-located 168-unit apartment development in Northglenn submarket
V-Esprit Residences
Renovated, 100-unit community in Aurora submarket
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
Portland
Vacancy rate, as of December 2024, is 6.0%. Since 2014, apartment rents increased 3.6%/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 submarket of Vancouver.
Summary of Terms
| Capital Committed | $175,000,000 (as of December 31, 2024) |
| General Partner's Commitment | $19,000,000 |
| Minimum Investment | $100,000 |
| Unit Price | $1,252 (as of December 31, 2024) |
| 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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