Rock River Capital (RRC) was founded by Dan Hayes in 1999 and is funded by JEN Partners, LLC, one of the nation’s leading private equity investors in residential land and home building. RRC and JEN Partners invest in for-sale residential communities throughout the Mid-Atlantic region. RRC’s clients are successful homebuilders and land developers that have demonstrated the ability to survive and profit during tough business cycles.
RRC and JEN Partners make investments through land banking and joint venture structures, and the direct purchase of land and promissory notes.
Land banking, or structured lot financing, allows builders to purchase finished lots on rolling options to maximize the efficiency of their capital and enhance returns on equity.
For land developers, land bank financing accelerates the monetization of land assets, provides a source of capital for improvement costs and can often accord favorable capital gains treatment. RRC offers a variety of flexible land banking structures – both current pay and accrual with fixed or floating pricing.
RRC uses joint ventures to partner with seasoned land developers to acquire and develop land for sale to homebuilders (A&D JVs). Joint ventures with proven homebuilders are used to acquire and develop land and construct, market and sell new homes (AD&C JVs). Joint ventures are managed by the operating partner and typically utilize prudent leverage.
Qualifying investments include entitled land, raw land, land under development, finished lots, and new home communities. RRC and JEN Partners invest across the housing spectrum from entry level to high-end housing and from suburban, master planned communities to repurposed, urban infill properties. Target investment size ranges from $5 million to $50 million..
Our clients and partners are the nation’s leading home building and land development companies. Successful public builders, private builders and land developers know the value created by a reliable and experienced investment partner.
RRC and JEN Partners are a dedicated and reliable source of creative capital to builders and land developers.
Qualifying investment criteria include:
– For sale residential properties with a demonstrated competitive advantage located
in close proximity to transportation, retail services and employment centers,
– Land must have no material impediments remaining to secure full entitlements and complete approvals,
– Projects that commence development within six to twelve months from acquisition,
– Developments that can be completed with investments fully realized within four years.