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Global investment firm backs Dream Finders Homes with $100M land banking venture

Minneapolis-based Värde Partners is helping to fund the newly public Dream Finders Homes’ Florida expansion as a major component in its recent $250 million capital investment to fund new home construction across multiple markets, including here in Central Florida.

The alternative investment firm announced three transactions this week, including a $100 million land banking facility with Dream Finders. The other transactions that make up the balance of the $250 million involved the acquisition of master-planned communities in Austin, Texas and Scottsdale, Arizona.

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The Dream Finders capital will be used to acquire land in Florida and Colorado, with a focus on Jacksonville, Orlando and Denver, to be developed into residential lots. The builder currently has nine active communities in the Denver market and more than 50 in Jacksonville and Orlando.

Having first invested with the builder in January 2019, this deal expands Värde’s ongoing partnership with the company, working together to develop high quality and affordable homes in attractive communities.

The deal includes entire Century Homes Florida portfolio, including active Craft and Century Homes projects in Lake Nona’s Laureate Park.

The first land banking transaction took place on Jan. 31, the same day Dream Finders Homes closed on its acquisition of Century Homes/Craft Homes from Tavistock. The Värde-funded entity VPDF-Wiregrass LLC paid $15.3 million for hundreds of lots in Phase 1 of the community on Jack Brack Road in St. Cloud. The deed was recorded in Osceola County this week, after the LLC was registered with Florida’s Secretary of State.

Orlando Division President Gerry Boeneman told GrowthSpotter the Värde capital funded the Wiregrass portion of the Century acquisition. The full purchase price for the homebuilder and its inventory won’t be made public until Dream Finders files its next quarterly report with the Securities and Exchange Commission.

Wiregrass opened for sales in 2020. Century Homes is one of three builders — along with Avex Homes and Hanover Family Builders — active in the 610-home community.

Värde Partners will also back the Jacksonville builder in its next acquisition in Horizon West. Dream Finders Homes, which opens sales in Lakeside at Hamlin in May, has a purchase contract on another Hamlin West community called Parkview at Hamlin, which is approved for 225 townhomes. The homebuilder is introducing a new 3-story townhouse concept with rooftop terraces that were designed specifically for this community.

Värde Partners registered another limited liability company this week, VPDF-Hamlin LLC, which will be the purchasing entity for Parkview.

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @byLauraKinsler. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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