Current Offering

Note: This offering has closed. New investors are encouraged to inquire about investment opportunities in DJR Cos.’ pipeline. Read the following summary as an example only of DJR’s fund or SPV model.

DJR Capital Fund III

DJR Capital Fund III is an opportunity for accredited investors to participate in a unique private offering by DJR Companies:

One Investment. Multiple Projects.

Previous offerings were only available to close associates of the firm for investment in single-project entities with one development asset. DJR’s fund strategy allows for a greater number of select high net worth investors and family offices to diversify across multiple residential infill developments with a single subscription to DJR Capital Fund III for as little as $100,000.

This real estate development fund targets land planned for single-family infill product as well as multifamily/mixed-use with a one to three-year exit per project, with cash flowing build-to-rent projects on a case by case basis. Fund capital is intended for distribution across several projects as that project’s equity component. Learn more about the fund structure below as well as DJR’s Investment Strategy.

Each DJR Capital project is under direct supervision of DJR Companies as sponsor and project manager.

This fund has closed, but feel free to read as an example for future funds.

CAPITAL FLOW INFOGRAPHIC (how it works):

Investors purchase membership interests in DJR Capital Fund III, which invests directly into special purpose Investment Entities, typically an LLC that holds title to each development property individually and managed directly by DJR Companies.

The intent is to spread a single investment in the fund across several smaller infill projects with a lower risk profile and quicker returns than the same amount of capital into one large development.

Each Investment Entity will utilize the capital contribution to fund the equity required for development of each real estate project over a period of approximately one to three years. As profits are returned on each project from its Investment Entity LLC, that capital flows through the Fund to Investors until each Investment Entity wraps up (with the Fund itself wrapping up after the last project’s IE c).

Again, this fund has closed, but feel free to read as an example for future funds.

FINANCIAL INFORMATION:

It’s a pretty simple waterfall. After paying back any A&D or construction loan, equity capital is returned, and then profits are split as follows:

Investors’ Class A shares in the Fund entity (e.g., DJR Capital Fund III) are expected to earn a 60% share of profits. A 10% preferred return is offered if Class B’s catch-up clause is not met.* An additional incentive may be offered for investments over a certain size and/or before a certain deadline. DJR Companies’ Class B shares may be available for development partners and possibly contractors contributing services for equity.

Investments by this fund are focused on high-yield equity shares in relatively small, higher-velocity infill development projects with a residential component. Risk mitigation is sought through delayed leveraging and diversification across multiple projects.

*10% preferred return applied before a catch-up to Class B member(s) (the Manager) 60/40 thereafter. This is a simple protection for investors if returns are low (investors are first out), but moot if returns are high as expected (we all win). Detailed information in the offering documents and disclosures.

Reference DJR’s Projects list for a recent snapshot of the firm’s real estate development and project management track record.

Investors may wish to read the principals’ bios as well, since an investment in a DJR development is truly an investment in its Management Team.

Disclaimer: This does not constitute an offer to sell or to buy securities. Such offers may be made only to accredited investors through delivery of the offering documents.