From the beginning of his career in commercial real estate finance—first at Credit Suisse and then later at CW Capital and Global Atlantic Financial Group—Beckford observed Wall Street’s obsession with financing big deals as he routinely worked on transactions that required more than $50 million in capital. That created a major gap in the market, leaving commercial real estate operators who develop or renovate smaller properties with more limited funding options. Whereas institutional investors often considered such entrepreneurs to be too small to back financially, Beckford viewed them as critical to transforming local communities across the country.
“There’s a whole universe of small real estate operators doing cool, transformational things in their local communities. They’re taking dilapidated properties in underserved areas and fixing them up, creating jobs, and revitalizing neighborhoods,” says Beckford, now the CEO of Diversified Lending Solutions (DLS), a real estate capital advisory based in New York City. “These smaller operators are real engines for local growth and the development of local economies, but in many cases, they’re just hamstrung financially. Without traditional access to capital, their path to growth—and to social impact—is slowed down dramatically.”
Beckford cofounded DLS in 2020 specifically to help these smaller operators obtain funding for their projects, and the firm prioritizes access to capital for underserved communities.
“I wanted to bring the creativity, expertise, and white-glove thoughtfulness that comes from Wall Street and apply that on a more local level,” Beckford says. “I wanted to focus on the operators from communities that have been on the lowest end of the spectrum, in terms of access to capital: women-owned businesses; operators of color from African-American and Hispanic communities; and military veterans. We’re really trying to shine a light on the groups that are often quietly overlooked by big investors.”
Beckford says a small operator might be a professional fix-and-flipper, someone accumulating a portfolio of single-family rentals, or somebody buying a 200-unit housing complex, strip mall, or small hotel. They often need capital in the $1 million range and up, with intentions of building sizeable portfolios, but are left to navigate the complexities of capitalizing their projects—from debt to equity funding options—on their own.
This is precisely where DLS steps in, leveraging 20 years of industry experience and relationships to connect clients with the right investors. “We view ourselves as an extension of these small developers’ capital markets teams,” observes Beckford. “We take our expertise and figure out the best way to capitalize the deal, which counter-parties—banks, debt funds, REITs, or even insurance companies—are best positioned to fund it, and then help our partners refine their business plans and create a narrative that frames each deal in the best possible light.”
Since its launch, DLS has arranged funding for, or partnered with, more than 15 operators nationwide, many of whom are BIPOC groups focused on urban revitalization. Projects include townhome and single-family developments in Atlanta and Philadelphia, as well as value-add multifamily buildings in the Bronx, Detroit, and Houston. The firm is currently partnering with an operator of extended stay hotels in the Southeast, as well as a church in Prince George’s County, Maryland, to build a new sanctuary as well as community and recreational center.
Beckford notes one of the firm’s proudest accomplishments to date has been helping Houston-based Bodka Creek Capital become the largest African-American, woman-owned multifamily operator in the United States, with a $40 million loan to acquire and revitalize a 460-unit naturally occurring affordable housing complex. “They’re updating living spaces, replacing roofs, addressing years of deferred maintenance, and creating vibrant community spaces with playgrounds and picnic areas, with modest rent increases so residents are not priced out of their homes,” he says.
Bodka Creek is owned by Allyson Pritchett (MBA 2014), who, despite her significant corporate experience, found it challenging to secure the funds for the project. Beckford says that’s because many of his larger competitors providing advisory services often don’t appreciate or prioritize emerging managers or projects in the submarkets where they operate.
“This wasn’t a shiny new product, and other firms didn’t view this operator as a partner,” he adds. “But we were very confident in her ability to execute her plan and confident that we could find investors who could appreciate it. Now she’s actively creating a higher standard of living for a very meaningfully sized community.”
The Bodka Creek project embodies everything Beckford envisioned for DLS. As a small boutique firm with limited resources, the company evaluates potential clients and partners based not only on their ability to execute their business plans, but also on their potential to positively affect their communities. “Are they able to create jobs or bring much-needed services to a community?” he asks. “Will their project bring affordable new housing to alleviate price pressure in an area? That’s really what determines with whom we invest.
“When you’re buying a building, you’re really buying the potential to either help make peoples’ lives better, or to make them worse; it’s rarely neutral. There is no lack of qualified, right-minded operators, and they are all offering as good a return as any mainstream investment can offer. I get fired up about it because I see how tremendously talented they are. I want them to be able to fulfill their vision, and I want to be a part of that.”
