SAN DIEGO – (COMMERCIAL THREAD) – Pathfinder Partners (“Pathfinder”), a San Diego-based private equity firm specializing in multi-family real estate investments, today announced the quarterly close of Pathfinder Income Fund, LP (“Fund”), with over $ 5 million in new commitments, bringing the Fund’s total capital to over $ 137 million.
A stabilized multi-family fund for qualified investors, the Fund continues to seek new multi-family acquisitions. To date, the Fund has acquired 11 properties with a total of 1,279 units in four markets in the western United States (Sacramento, San Diego, Phoenix and Denver). Since its founding in 2006, Pathfinder has acquired or sold over 135 properties with a total value of over $ 1 billion.
“Across all categories of real estate assets, private multi-family real estate funds are perhaps best positioned to address both short-term inflation concerns and longer-term growth opportunities,” he said. said Mitch Siegler, co-founder and senior managing director of Pathfinder. âWhile inflation is not an issue, due to the persistent imbalance between the supply and demand for housing in the United States and the availability of low-cost debt, multi-family properties offer a real estate investment at low risk and income generating, as well as an alternative to the bond market, which can generate alpha in a more consistent way.
With a focus on downside protection, the Pathfinder Income Fund focuses on stabilized Category B apartments. The Fund’s cautious approach to leverage, its preference for fixed rate debt and l The focus on cash-generating properties provides investors with a lucrative and tax-efficient opportunity to increase their exposure to real estate.
The Fund’s most recent acquisition is Chestnut Ridge, a 156-unit garden-style apartment community in Denver acquired in September. Chestnut Ridge offers an attractive mix of spacious studio, one- and two-bedroom apartments close to several employment hubs such as the Denver Tech Center and the Fitzsimons Medical District. Recent improvements to the property include improvements to the pavilion, all amenities in common areas, and improvements to outdoor and outdoor areas.
“Chestnut Ridge provided an excellent opportunity to acquire a performing asset with upside potential in a highly desirable suburban location in a market ready for future population, employment and rent growth,” added Mr. Siegler. âChestnut Ridge is a perfect example of the attractive and income-generating multi-family properties in the Income Fund pipeline. ”
4-5% immediate annual cash flow distributions; Target 2.3 times the net multiple of equity, 13% gross average annual returns, 10% + net internal rate of return
Favorable distribution 85% / 15% between the limited partners and the general partner
Significant cash flow with taxable income sheltered by depreciation
Pathfinder’s primary target markets are Seattle, Portland, Sacramento, San Diego, Phoenix, and Denver, although Pathfinder Income Fund may also invest in other metropolitan areas.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such an offer or solicitation is not authorized and does not constitute an offer in any jurisdiction to any person in that such an offer would be illegal. In addition, the securities offered by Pathfinder have not been registered under the Securities Act, any state securities laws or the securities laws of any other jurisdiction and may not be offered or sold without registration or applicable exemption from registration requirements. For more information on Pathfinder Income Fund, please visit pathfinderfunds.com/ Incomefund.
About Pathfinder Partners
San Diego-based Pathfinder Partners was founded by Lorne Polger and Mitch Siegler in 2006 to make opportunistic and value-added real estate investments. Since its inception, Pathfinder has acquired or sold over $ 1 billion in properties and currently manages over $ 750,000,000 in real estate assets, primarily income-generating multi-family properties in six mid-size cities in the western United States. United. For more information about the Company or Pathfinder Partners Income Fund, LP, visit pathfinderfunds.com.
Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those regarding the proposed offering of securities and targeted investment returns and the net multiple of capital. clean. These forward-looking statements are made only as of the date of this press release and are based on Pathfinder’s current intention, beliefs, plans and expectations. They involve risks and uncertainties which could cause actual results, performance or future developments to differ materially from those described or implied by these forward-looking statements. Pathfinder assumes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unforeseen events, or changes in future operating results over time, other than as required by law. .