Behind DLP Capital’s refinancing process
At DLP Capital, we’ve built an organization of experts— transaction, legal, and capital markets—to identify, evaluate, and capture the most competitive and lowest-cost financing opportunities.
At the heart of the process is a disciplined, multi-step approach that encompasses months of diligence, strategic thinking, and cross-team expertise. Here’s how we approach it:
1. Identify and underwrite opportunities
DLP proactively tracks and identifies investments with refinancing potential across the DLP Housing Fund and DLP Building Communities Fund’s portfolios.
These include mortgages with upcoming maturities, properties financed with more expensive debt, or appreciated assets where we can provide liquidity to the fund through additional leverage.
Our team then performs rigorous financial analysis, reviewing rent rolls, operating statements, and performance metrics to understand the full financing potential.
2. Build the narrative and engage lenders
Through the creation of comprehensive debt packages, complete with deal summaries, proformas, market comparables, and sponsor profiles, prospective lenders can understand the story and potential behind our assets.
We then leverage our broad network of banks, credit unions, life insurance companies, and agencies like Fannie Mae and Freddie Mac—engaging the debt capital markets to find the most competitive sources.
Each refinancing involves targeted outreach to as many as 20–150 lenders, allowing DLP to secure a range of quotes and structure creative, bespoke financing solutions for each asset.
3. Review and approval from senior leadership
After receiving quotes, our teams shortlist the most competitive opportunities. They evaluate each option across key factors—proceeds, debt service, and cost of capital— and compile their analysis and recommendations into a detailed report, which is presented to DLP Capital’s Investment Committee for final lender selection.
4. Due diligence, documentation, and closing
After executing a term sheet, the teams work to close the deal. Our transaction team helps coordinate the lender’s due diligence process by managing third-party reports and ensuring that appraisals and other diligence align with the property’s market value.
From there, our legal and finance teams work in tandem to finalize documentation, track covenants, and oversee post-closing items.
The goal of every refinancing transaction is to deliver a seamless, predictable, and on-time closing. By combining deep market intelligence with cross-functional expertise, DLP Capital’s meticulous, value-driven process transforms complex financings into compelling outcomes for our investors.
