DF Capital Management Raises $138mm in Initial Fund II Closing for Single-Family Housing

DF Capital Management, LLC (DFCM) today announced that it has exceeded its first close target for its real estate investment vehicle, DF Residential II, LP (Fund II), with $138mm of commitments. Fund II is expected to remain open for a final close within 6 months.

Fund II is making investments to provide finished lots to homebuilders for the construction of entry-level homes which remain in short supply across most of the country. DFCM executes this strategy by investing in fully entitled and shovel ready land, while ensuring all builder contracts and deposits are in place prior to land purchase.

"Housing is in short supply. When you consider the demographics and shift in living preferences as a result of COVID-19, it is unlikely that supply catches up with demand anytime soon," said Chris Butler, Managing Partner of DFCM. "We believe our strategy is an attractive way to invest in this secular shift back to single family living."

Fund II's value proposition is further enhanced through its partnership with Dream Finders Homes, Inc. (Nasdaq: DFH), a Jacksonville based national homebuilder that completed its initial public offering in January 2021. Various synergies allow DFCM to efficiently scale its land platform with Dream Finders Homes and other builders, while Dream Finders Homes adds an important capital source to execute on its asset light model.

"By utilizing land partners like DF Capital Management, Dream Finders Homes can focus on being a great homebuilder, while our land partners with different investment objectives can receive a premium return on their capital. It's a win-win for both parties," said Patrick Zalupski, CEO and Founder of Dream Finders Homes.

About DF Capital Management, LLC

DF Capital Management, LLC (DFCM) is the investment manager of DF Residential I, LP (2018) and DF Residential II, LP (2021). DFCM invests in residential real estate by selling finished lots to homebuilders for the construction of single-family homes across the country. Target markets include Jacksonville, FL | Orlando, FL | Austin, TX | Denver, CO | Raleigh, NC | Charlotte, NC | Savannah, GA | Hilton Head, SC.

About Dream Finders Homes, Inc. (Nasdaq: DFH)

Dream Finders Homes, Inc. is a top-25 national homebuilder based in Jacksonville, FL, with industry leading returns on shareholder's equity. Dream Finders Homes achieves its industry leading growth and returns by maintaining an asset light homebuilding model. Dream Finders Homes, LLC, the primary operating subsidiary of Dream Finders Homes, has a 49% membership interest in DFCM and has entered into land bank financing arrangements and a Memorandum of First Offer with Fund II.