DENVER, CO - JCR Capital (JCR), a Denver-based commercial real estate finance fund manager, has launched its second fund, the JCR Capital Commercial Real Estate Finance Fund II, LP (Fund II). The new fund will focus on financing distressed, opportunistic, and value added investments; as opposed to being a buyer of real estate assets.
Source: JCR Capital
Fund II is a follow up to JCR's successful Fund I, which is now over 70 percent invested. The new fund has a target capitalization of $100 million, with over $11 million already being invested by JCR shareholders.
"Fund II will seek to profit from the departure and retreat of many middle market lenders and capital providers over the past three years," said Jay Rollins, JCR Managing Principal. "This reduction in the supply of capital is coming at a time of significant demand for commercial real estate financing solutions. It is estimated that in excess of $1.7 trillion of commercial real estate loans will be maturing over the next five years; many will need to be refinanced with fresh capital."
Fund II will invest in a diversified portfolio consisting primarily of debt, participating debt, preferred equity, and pari passu equity positions in U.S. properties. The focus will be on short duration investments, ranging from six to 36 months. As such, Fund II will have a two year investment period and a four year term.
Using a similar strategy executed in the first fund, Fund II will be managed by Mr. Rollins and Maren Steinberg, a JCR Managing Principal. Since 1992, throughout a variety of real estate cycles, this team has successfully invested approximately $1.8 billion in over 260 middle market commercial real estate transactions across three platforms.
Mr. Rollins and Ms. Steinberg's over 40 years collective experience in underwriting and asset management have helped them avoid many of the pitfalls leading up to the real estate crash. As a result, JCR has no legacy issues. JCR's first fund began investing in 2010 and already has had one realization to date, which generated a gross IRR of 83 percent. Perth Advisors is the placement agent for Fund II.