DENVER–JCR Capital Investment Corp. says it has sold minority interests of the company to StanCorp Financial Group, and Soundview Real Estate Partners. The transaction closed on Jan. 9.
As part of the deal, StanCorp will partner with JCR to expand its bridge lending program. Soundview, who JCR has partnered with on over $200 million of transactions in JCR’s previous private funds, has contributed significant equity to co-lead JCR’s next fund, JCR Commercial Real Estate Finance Fund III, L.P. (Fund III), which will launch in January of 2014.
Founded in 2006, JCR focuses on providing capital to transitional, opportunistic and distressed middle market commercial real estate assets throughout the United States. JCR provides capital structured as bridge loans, mezzanine loans, preferred equity and joint venture equity.
In 2012, StanCorp’s subsidiaries provided over $1 billion of small balance commercial real estate permanent loans. Soundview has invested over $450 million of preferred and joint venture equity to transitional assets, non-performing and sub-performing loan portfolios since starting operations in 2003.
PartnerRe Ltd., one of JCR Capital’s original partners remains a shareholder of the company and anticipates investing in subsequent JCR investment vehicles.
The transaction expands JCR’s product offerings, as well as its origination capability and deal flow. With the closing of this transaction JCR is now one of the few national “one-stop-shops” for real estate finance, specifically focused on the middle market.
“We are very excited about this transaction and our new partnership with StanCorp and Soundview,” said Jay Rollins, CEO of JCR Capital. Rollins went on to say, “StanCorp is a substantial player for small balance commercial loans, and this partnership provides JCR an excellent entry into the small balance bridge loan space. Soundview was a natural fit, as we have been partnering on fund transactions for over four years. Formalizing the relationship with Soundview in Fund III will create numerous synergies, including increased deal flow and an East Coast presence.”
JCR’s bridge loan program will target senior loans between $2 – $10 million secured by income producing commercial real estate located throughout the continental U.S. JCR expects to launch Fund III later this month, targeting $250 million of equity commitments.
Houlihan Lokey advised JCR Capital in the transaction.