Active-selling Charleston Homesites Part of $412M Acquisition Deal
In a significant business move, Builder Capital and 400 Capital Management LLC have closed a land banking deal with Dream Finders Homes, leading to the acquisition of over 4,000 residential home sites in Charleston, Greenville, and Nashville. This acquisition worth $412 million is a part of DFH’s acquisition of the core homebuilding assets of Crescent Homes. The deal will bolster DFH’s capacity to deliver affordable housing products in these supply constrained markets.
A Strategic Partnership
By building on the existing alliance between Builder Capital and Dream Finders Homes, the transaction has added a substantial portfolio of home sites at a large scale to their combined strengths. “We are pleased to execute this transaction and acquire a great portfolio of home sites at significant scale,” said Bill Southworth, managing partner at Builder Capital. He further highlighted the transaction’s reflection on their ability to meet the needs of homebuilder partners, with Dream Finders Homes being a repeated customer.
Targeting Diverse Homebuyers
The acquired home sites, which span over 25 active selling communities, are strategically placed to serve an array of homebuyers. The communities include first-time homebuyers, as well as individuals looking for their first or second move-up homes. The finished home price points will start in the low-$300,000s, offering an affordable housing solution in these areas.
Enhancing Market Presence
Post-acquisition, the strategic partnership between Builder Capital and 400 Capital has expanded to over 11,250 lots of inventory and over $1.4 billion of the total project cost. Assigning credit to the deal, Chris Schiavone, head of private credit strategies at 400 Capital Management, stated that Builder Capital and 400 Capital have positioned themselves as leading providers of acquisition and development capital solutions to the residential housing market, further enriched by this massive and essential transaction.
Significance of the Deal
The successful closure of the deal solidifies the presence of all three companies in the residential housing market. For the homebuyers, it promises an influx of affordable housing options amidst a growing scarcity of supply. In the broader picture, this transaction underlines the continued growth potential of the residential realty sector in Charleston, Greenville, and Nashville.
