Pathfinder's Lorne Polger says his firm has already raised $30M in 75 days in the new fund toward an ultimate goal of $100M-plus in equity, which can be leveraged to $300M. And while he's scouting interest from institutional investors, Lorne (with a big catch in Cabo) tells us that he's also attempting to raise funds from individual accredited investors, via general solicitation, a strategy that's new for Pathfinder's funds.

Its most recent SD buy was an opportunistic retail (here) move that we reported here. But Lorne says its investment targets will remain value-add multifamily and condo assets in what it sees as hip secondary cities like San Diego, Seattle, Austin, Denver and even Phoenix over the next 24 months. But its price target often necessitates that Pathfinder buy in the suburban multifamily market. That's fine, Lorne says, because those properties are often in a “sweet spot” that's too inexpensive for institutional investors but too expensive for individual and local buyers. “We still kind of see fatigued owners, owners who are capital constrained or owners who don't have the eye to make the necessary improvements to their properties,” he says.

Lorne does share a growing concern among some multifamily investors about Millennials: Could the escalating rents at properties—especially prime urban properties that aggressively court that generation—be close to tapping out on their ability to pay? “It's definitely a concern, and it's certainly a concern at the highest end of the marketplace,” he says. “We think there is a cap in how much they can pay.” And at some point, Lorne even believes Millennials will begin to re-examine homeownership as well. He highlights his two college-aged children (here with his wife). “They both tell me they want to be urban for now at this stage in their lives. But ultimately, I think they both will say they want to be suburban,” he says.