BRD, an existing DLP Capital client, reached out at the end of March with an urgent request for a loan. Their project, a 361.66-acre site with 1,065 entitled paper lots in Youngsville, North Carolina—a suburb situated roughly 35 minutes from both downtown Raleigh and Durham—was pending sale to a Berkshire Hathaway-owned homebuilder in two phases for a total of $47 million.
But BRD risked losing the property, called Rolling Meadows, after the firm’s original capital partner backed out two weeks prior to closing. Worse, the seller would not extend the contract because of the property’s unique value: Rolling Meadows has rare water rights, which make it extremely valuable in the region.
After putting down a $6 million non-refundable deposit and $365,000 in additional funds, BRD secured a short extension, but still had to come up with the remainder of the cash—fast.
DLP Capital’s relationship management, transaction management, credit, legal, closing, and treasury teams worked around the clock to underwrite, approve, and fund a $24 million loan in just 13 calendar days—demonstrating speed, grit, and commitment to our trusted partners.
The loan, extended at a 15.25% interest rate, was made at an LTV of 70% and an LTC of 80%. The deal generated $583,000 in fees for DLP Capital at origination and will, based on the timing of payoff, provide us with between $3.5 million and $4.5 million in exit fees.