DENVER—JCR Capital, a Denver-based real estate finance company, announced the first close of its third fund, the JCR Capital Commercial Real Estate Finance Fund III, L.P.

The first close had $105 million in commitments, including a $26 million GP investment. Fund III is targeting a total capitalization of $250 million with a final close at year end.

Fund III will continue the strategy from Funds I and II of providing customized capital solutions to commercial real estate middle market sponsors whose assets do not typically attract institutional capital. The fund is national in scope, with an emphasis on the Western United States. Fund III targets short duration investments, typically six to 36 months, in multifamily, retail, industrial, office, and finished lots using a diversified mix of senior debt, participating debt, and structured equity positions. In line with the prior JCR funds, Fund III is credit focused with a mandate of protecting principal while providing investors with excellent risk adjusted returns, including current pay and profit participation components.

JCR Capital was founded in 2006 and was initially focused on distressed transactions. The company has now transitioned to a “full cycle” finance company, focused on the middle market. Opportunities continue to be prevalent in the middle market due to less efficient capital and entrepreneurial ownership. In addition, JCR will seek to capitalize on the substantial amount of legacy loan maturities coming due over the next four years.

Fund III is managed by Jay Rollins and Maren Steinberg, JCR's managing principals. Since 1992, through several real estate cycles, this team has successfully invested over $2 billion in over 300 middle market commercial real estate transactions across three platforms -- with less than a one percent principal loss ratio.

Rollins is author of the recent book, Commercial Real Estate Uncovered, a handbook for real estate finance and investment. He is a recognized industry leader and is a featured speaker and guest lecturer at numerous industry events and colleges and universities. Rollins is best known for calling the top of the commercial real estate market in 2007.

Perth Advisors is the placement agent for Fund III.

Instant Insights /

JCR Capital Expects $250M Fund III Close

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