Debt Fund 1
Senior Secured Construction Credit · St. Augustine, FL
1565 Debt Fund 1
Construction capital for experienced builders. A disciplined income strategy for investors.
Regional builders need capital to move homes from plans to completion. 1565 Debt Fund 1 seeks to meet that need through first-lien construction lending backed by a platform with more than $529 million originated—and hands-on expertise from underwriting through project completion.
The Thesis
Builders need capital that understands construction.
Housing markets move in cycles, but building does not stop when conditions become more challenging. Experienced regional builders continue to finance land, labor and materials for projects that make economic sense in their local markets.
At the same time, traditional lenders can tighten credit, reduce lending ratios or limit exposure to construction. That creates an opening for specialized lenders who can evaluate the builder, the budget and the path to completion—not just the collateral.
1565 Debt Fund 1 seeks to serve that need with first-lien loans, disciplined underwriting and milestone-based funding. The opportunity is to finance carefully selected projects—not to rely on defaults or rising home prices.
Market context: NAHB AD&C survey · Q2 2026; FDIC lending guidance · December 2023; Census/HUD construction data · August 2026.
Market Context
Construction continues. Access to credit is uneven.
Residential builders and developers reported tightening AD&C credit conditions for eighteen consecutive quarters through Q2 2026.
Single-family housing starts at a seasonally adjusted annual rate in August 2026—not the number of homes started that month.
Among builders reporting tighter credit in Q2 2026, 53% said lenders required personal guarantees or collateral unrelated to the project, and 47% cited lower loan-to-value or loan-to-cost ratios. NAHB AD&C Financing Survey · Published August 12, 2026
National data provide market context, not a forecast of Fund performance. Financing needs and project viability vary by market and builder. Continued construction does not establish recession-proof demand or guarantee profitable projects.
Platform Track Record
Platform history reflects the Manager's affiliated lending business, not the Fund, which is newly formed. Past performance does not guarantee future results.
Lending First. Affiliated Safeguards.
Construction expertise behind every lending decision.
Lending is 1565 Debt Fund 1’s first priority. Affiliated lending, title and insurance capabilities support origination and loan protection. If an asset becomes troubled, affiliated construction, property-management and brokerage capabilities provide additional options to help protect the Fund’s position—not a routine property-ownership or rental-income strategy.
Ancient City Capital’s platform: $1.9B+ in assets under management, 8,000+ units across 55+ projects, and 40+ years of leadership.
Lend
1565 Capital finances experienced builders on terms the platform controls.
Protect
In-house title and insurance companies handle closings and coverage.
Complete
If an asset becomes troubled, affiliated construction teams can support completion as part of a recovery plan.
Manage if Needed
Only if an asset becomes troubled, affiliated property-management partner Integrity Rise can support management of the asset while a recovery plan is pursued.
Disposition if Needed
If an asset becomes troubled, affiliated brokerage relationships through the ERA Real Estate network can support disposition as part of a recovery plan.
Strategy
Ground-up homes. First lien. Milestone-based draws.
Single-family homes, townhomes and small multifamily by proven regional builders. Loans typically $150K–$3M, interest-only with reserves funded at closing, and full personal guaranties from every 20%+ owner.
- Max 77.5% as-completed LTV
- Draws released only as construction milestones are verified
- Independent appraisal, title insurance & builder interview on every loan
- Prudent back leverage to enhance investor returns
Risk mitigation, from underwriting onward.
Lending remains the priority. First liens, conservative lending ratios, verified construction draws and borrower guarantees are the first line of defense. If an asset becomes troubled, capabilities affiliated with 1565 Debt Fund 1 provide additional options for completion, asset management and disposition. These redundant safeguards may help mitigate losses; they do not eliminate credit risk or guarantee recovery.
The Offering
Simple notes. Predictable income.
Base Return
8.00% per annum, with upside targeting 11–13%+ total return.
Structure
Unsecured term notes in $5,000 units. $100,000 minimum.
Liquidity
Five-year term. Two-year lockout from issuance; after that, redemption may be requested on 90 days' written notice, at the Manager's sole discretion and subject to available cash.
Fees & Expenses
What the Fund pays, stated plainly.
Fund costs are paid from offering capital and Fund income. No costs are billed directly to individual investors, and there is no front-end or back-end sales load or commission. Subscriptions purchase Notes at par.
| Performance participation | After the 8.00% base return, remaining net income is split 80% to Noteholders / 20% to the Manager. |
|---|---|
| Servicing fee | 0.25% per annum (non-construction loans) / 0.50% per annum (construction loans) on outstanding loan principal, paid to 1565 Capital Funding LLC, an affiliate. |
| Fund administration | Approximately 0.65% per annum, payable to a third-party administrator; included within the operating expense cap. |
| Operating expenses | Capped at 3% of total debt outstanding per annum (legal, audit, tax, compliance, insurance, reporting, technology and similar costs). |
| Sourcing and debt brokerage | Up to 1% of Fund capital, payable to licensed broker-dealers or other intermediaries. |
| Lockout period | Two years from the date of issuance; redemption may then be requested on 90 days' written notice, at the Manager's sole discretion and subject to available cash. |
| Borrower-paid fees | Origination, extension, late, inspection and draw fees are paid by borrowers to 1565 Capital Funding LLC or affiliates. They are not Fund revenue and may create conflicts of interest. |
| Management fee | The Manager reserves the right to charge a management fee of 0.5% per year, applied only to cash contributed to the Fund. |
Summary only. The Private Placement Memorandum governs all fees, expenses and conflicts of interest.
Leadership
Operators and lawyers who've done it at scale.
Christopher Walker
Principal
Attorney with 15+ years in real estate and real estate finance, participating in transactions exceeding $5 billion. Leads credit funds and strategies and sits on the Investment Committee.
Lee Kaplan
Principal · Head of Operations & Business Development
Founder and operational architect of the lending platform. Built origination, operations and technology since 2015 — over $529M in construction loans originated.
Put your capital to work alongside ours.
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