DF Capital Management has closed its initial real estate fund at nearly $40 million. DF Residential I LP’s investors include a New York-based institutional manager and a prominent foundation. The fund will focus on providing project-level equity/debt for community development and the construction of entry-level homes.
JACKSONVILLE, Fla.–(BUSINESS WIRE)–DF Capital Management, an affiliate of Dream Finders Homes of Jacksonville FL, closed its inaugural real estate Fund (DF Residential I, LP) earlier this year with nearly $40mm of equity commitments. The investor base includes one of the country’s preeminent businessman, a New York-based institutional manager and a prominent foundation.
DF Residential I, LP is partnering with private homebuilders to provide project-level equity/debt for community development and the construction of entry-level homes. The Fund, which has 11 investments to date, secured project level debt alongside its equity commitments which will translate into over $90mm of purchasing power for residential land. DF Residential is investing nationally with a focus on the Jacksonville, Orlando, Austin, Denver, and Northern VA/MD metropolitan areas.
“In most markets across the country, entry-level homes are in short supply,” said Chris Butler, Managing Partner of DF Capital Management. “However, private builders still have issues getting the capital/land to bring supply to market. We’re excited to fill this capital void in a space where you still don’t have to fight to find good returns given the limited number of capital providers.”
The Fund’s value proposition is further enhanced through its relationship with Dream Finders Homes, one of the most successful and efficient production homebuilders in the country. Furthermore, the Fund has formed a well-regarded board which includes Brian Goguen, the CIO of the Barron Collier Companies—one of the largest land developers in the State of Florida.
Patrick Zalupski, the CEO and Founder of Dream Finders Homes commented: “We are excited to partner with DF Capital Management to help continue the growth of Dream Finders Homes. Dream Finders Homes provides a first class affordable home to our customers and we are excited to compliment the homebuilding side of the business with an attractive investment opportunity for institutional investors and high net worth individuals.”