DENVER, CO—JCR Capital says the final investment was made for its Commercial Real Estate Finance Fund II. In total, the fund has called $74 million (94%) of its capital.
Fund II deployed all its capital in a 33 month period and made 35 investments, 14 of which have already realized. The Investments are in 11 different states across the United States.
JCR Commercial Real Estate Finance Fund II L.P. (Fund II) investors include public pension funds, insurance companies, fund of funds, and family offices. The Fund II investment strategy was to provide capital to real estate sponsors seeking financing for distressed, opportunistic, and value-added commercial real estate. It focused on middle-market transactions between $2-15 million, providing sponsors with debt and structured equity. The fund offered customized capital solutions to commercial real estate middle market sponsors whose assets do not typically attract institutional capital.
“The success of Fund II is another major milestone for the company,” said Jay Rollins, JCR Capital's president and CEO. “Our vision is to continue to build out a full service, middle market real estate finance company to fill the capital void left by the 2008 financial crisis.
“We have established platforms for debt, structured preferred equity, and structured joint venture equity. We continue to see excellent opportunities that are brought on by substantial de-leveraging in commercial real estate and a lack of capital in the middle market,” Rollins said.
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The final investment was in two multifamily properties in Orlando, FL. The opportunity emerged from market dislocation. JCR Capital made a preferred equity investment with the sponsor. The sponsor needed to be recapitalized because their existing institutional partner decided to exit the portfolio. JCR has made previous investments with the sponsor and sourced this opportunity from this existing relationship.
Fund II was managed by 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 many universities and industry events. Rollins is best known for calling the top of the commercial real estate market in 2007.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
