DF Capital Management Raises $322M for Land Fund
Residential fund exceeds the target raise of $250 million.
DF Capital Management announced a big fund raise to purchase land to be used to provide finished lots to homebuilders who will construct entry-level homes across the US.
“Housing supply remains at record lows and favorable demographics in our target markets should continue to underpin demand,” according to the company’s release. “[This] is an attractive way to invest in this secular shift back to single-family living.”
DF Capital invests in fully entitled land, while securing all builder contracts and deposits prior to land purchase.
In 2021, the land market had its best year in nearly a decade as sales rose 6% and outperformed the pace of acquisitions of other commercial real estate types, according to the 2021 Land Market Report from the REALTORS Land Institute (RLI) and the National Association of REALTORS.
The final closing of DF Residential II in Q1 2022 with $322 million of equity commitments – exceeding its target raise of $250 million.
The fund’s commitments span nearly 100 investors of various profiles led by multiple institutional investors.
“While homebuilders are contending with the same supply constraints and inflationary trends affecting most companies today, the underlying fundamentals of the market remain strong,” Chris Butler, Managing Partner of DF Capital, said in prepared remarks. “Housing supply remains at record lows and favorable demographics in our target markets should continue to underpin demand.”