As of March 29, 2021, certain directors, executive officers and other officers have made investment commitments as limited partners in Fund II in an aggregate amount of $30.9 million, or 15.5% of the total expected commitment of Fund II. The individual investments exceeding $120,000 are as follows:
Patrick O. Zalupski
W. Radford Lovett II
J. Douglas Moran
Pre-Fund I Joint Ventures
Prior to the formation of Fund I, we entered into five joint ventures relating to land development, land acquisition and other homebuilding activities with DFH Investors, LLC, a company controlled by one of our directors, Mr. Lovett. Mr. Lovett was the managing partner of each of these joint ventures. Messrs. Lovett and Walton, two of our directors, and Mr. Moran, our Senior Vice President and Chief Operations Officer, invested $1.5 million, $1.5 million and $0.2 million, respectively, in these joint ventures.
As of December 31, 2020, these joint ventures had sold and delivered all homes to end home customers. In each of these joint ventures, we owned between 53.6% and 63.6% of the joint venture and profits, and we earned an overhead fee prior to the computation of the joint ventures profits. During the year ended December 31, 2020, these joint ventures collectively had 16 lot transfers to DF Homes LLC and 43 home closings, resulting in $2.1 million of net income. Our investment balance as of December 31, 2020 in these joint ventures was $0.3 million.
Prior to the formation of Fund I, we also entered into one joint venture with MOF II, DF Homes LLC and MCC Investment Holdings LLC (both controlled by Medley Capital Corporation), the holders of all of the Series B preferred units of our predecessor, DFH LLC (collectively, the “Series B Investors”). As of December 31, 2020, this joint venture was still operating and held 20 lots. We own 62.5% of this joint venture and receive pro rata profits and an overhead fee. During the year ended December 31, 2020, this joint venture had 66 lot transfers to DF Homes LLC and 54 home closings, resulting in $2.8 million of net income. Our investment balance as of December 31, 2020 in this joint venture was $3.8 million.
As of December 31, 2020, we had two outstanding guarantees in relation to debt agreements entered into by certain of our joint ventures. DFH LLC and DF Capital, individually and collectively, guaranty an $18.0 million loan agreement in favor of The Värde Private Debt Opportunities Fund (Onshore), L.P. (“Varde Capital”), the previous holder of all of the Series C preferred units of DFH LLC that were redeemed on January 27, 2021, whose borrowers are DFC Seminole Crossing, LLC, DFC East Village, LLC and DFC Sterling Ranch, LLC. These entities are joint ventures between us and Fund I. In addition, we have provided a guaranty in favor of Flagstar Bank in connection with a loan of $5.7 million, whose borrower is DFC Seminole Crossing, LLC. DFC Seminole Crossing, LLC is a joint venture between us and Fund I.
In addition, prior to January 25, 2021, DFH LLC and Mr. Zalupski generally guaranteed any debt agreements entered into by DF Homes LLC and its joint ventures.
Series B Loan
In September 2013, the Series B Investors issued a collateralized loan to us for the purposes of land acquisition and development. The loan carried monthly interest at an annual rate of 10%. In March 2020, the outstanding loan balance plus accrued interest of $4.7 million was paid in full. In connection with the loan payoff, Medley Capital Corporation released back to us reserve funds in the amount of $0.5 million.
Home Sale to Family Member
During the year ended December 31, 2020, the brother of Mr. Zalupski purchased one of our custom homes. The sales price of this home was generally in line with the sales prices of similar homes in the community in which such home is located, less a discount for a realtor commission that was not required to be paid since no real estate broker was involved in the transaction.