DF Capital Management Secures Over $322 Million for Residential Land Investment Strategy

DF Capital Management completed the final closing of its DF Residential II fund in Q1 2022, bringing total equity commitments to $322 million—substantially surpassing the initial $250 million target. The oversubscribed fund has drawn support from approximately 100 investors representing diverse institutional and individual profiles.

Investment Strategy and Market Positioning

The fund deploys capital into fully entitled residential land parcels, with a strategic focus on selling finished lots to homebuilders developing entry-level housing. Operating across high-demand markets including Jacksonville, Orlando, Austin, Denver, Raleigh, Charlotte, Savannah, and Hilton Head, the strategy addresses a critical supply gap in the single-family housing market.

DF Capital Management executes deals by securing builder contracts and advance deposits prior to land acquisition, minimizing acquisition risk while ensuring predictable exit opportunities. This operational model reflects broader industry shifts toward asset-light capital deployment in residential real estate.

Market Fundamentals and Growth Drivers

Housing inventory levels remain at historic lows nationwide, creating sustained demand for developable residential land. Favorable demographic trends in DF Capital Management’s target markets continue to support long-term appreciation and builder demand. Despite current inflationary pressures and supply chain challenges affecting construction, the underlying market structure remains resilient.

Strategic Partnership with Dream Finders Homes

A cornerstone of Fund II’s value proposition is the partnership with Dream Finders Homes, Inc. (Nasdaq: DFH), a Jacksonville-based national homebuilder that delivered over 4,800 homes in 2021. This collaboration enables DF Capital Management to systematically expand land investments in tandem with Dream Finders Homes’ growth trajectory.

For Dream Finders Homes, the partnership strengthens its capital-efficient operating model. By outsourcing land acquisition to specialized partners while maintaining focus on high-return homebuilding operations, the company preserves capital for shareholder returns while accessing critical land inventory through financing arrangements.

About the Investment Manager

DF Capital Management, LLC manages both DF Residential I (established 2017) and DF Residential II (2021), specializing in acquiring and monetizing residential real estate through controlled lot sales to national and regional homebuilders. The firm operates across multiple high-growth metropolitan areas with favorable demographic and supply fundamentals.

Dream Finders Homes maintains a 49% interest in DF Capital Management and has structured financing arrangements with Fund II, creating aligned incentives between the land investment platform and the end-user homebuilder.