by Jenn LoConte
DLP Capital Partners is pleased to announce the DLP Preferred Returns Equity Fund, LLC, a brand new opportunity available to our family of Investors and our third real estate equity fund to date.
With this unique fund, investments will be in a preferred position, either as preferred equity, with common equity invested “behind” the Fund’s investment, or as a loan with equity invested “behind” the fund. In both instances, the Fund gets paid on a preferred basis with the common equity being subordinate to the Fund. The second unique feature of this Fund is redemptions. Investors may redeem out of the Fund at any time during the life of the Fund with 180 days notice. Investors will receive the lower of the prevailing unit price or a 12% IRR upon redemption.
This Fund will function similarly to the highly successful Equity Fund II, offering investors the opportunity to invest in our equity partnerships to acquire multi-family B and C-class communities. We are currently focused on properties located primarily in the southeastern United States as we know these markets well. However, If the right opportunity presents itself outside of that part of the country, we will consider it as long as it makes sense for us and our strategy.
In addition to our own internal acquisitions of purchasing properties and operating them through DLP Property Management, we’ll also provide equity by forming partnerships with other multi-family operators similar to ourselves. For example, a company we partner with will be responsible for renovating and managing the property, but based on our own due diligence and analysis, we will invest in that project as a senior partner. In terms of senior equity, DLP will receive a preferred rate of return, will have a certain percentage of ownership of the project, and when the property is sold, we will be paid back as a senior equity partner. This gives DLP additional opportunities to partner with like-minded operators and expands our reach as we continue to grow our own portfolio.
At DLP, our experts are consistently communicating with our Investors and listening to what they are looking for in terms of the investing world. The Preferred Returns Equity Fund is based directly on our clients’ feedback. Larry Hickernell, Investor Success Manager, comments, “There has been a high demand for this kind of investment and we are excited to bring it to our Investors. It’s a limited opportunity that will have great ongoing benefits and larger overall returns.”
For additional information, visit dlpcapitalpartners.com.