JCR Capital has held a final closing for its second commercial real estate finance fund. A spokesman confirmed that the Denver-based real estate fund manager has garnered $106 million in commitments for its JCR Commercial Real Estate Finance Fund II, exceeding its initial target of $100 million. Fundraising for Fund II was run by placement agent Perth Advisors.
Public pension funds, foundations, insurance companies, fund of funds and family offices are among the investors in Fund II, according to a statement from the firm. JCR accepted minimum commitments of $5 million from LPs and saw a 90 percent re-up rate from Fund I. Almost half of the capital raised has been invested, and investors already have received distributions.
Announced in May 2011, Fund II’s investment strategy is to provide capital to real estate sponsors seeking financing for distressed, opportunistic and value-added real estate in the US. Through the fund, JCR is focusing on middle-market transactions between $2 million and $15 million, providing sponsors with debt, preferred equity and joint venture equity. The fund is targeting returns in the high teens to low 20 percent range.
Jay Rollins, president and chief executive officer of JCR, said in a statement: “We now have established platforms for bridge loans, private capital and joint venture equity. We continue to see excellent opportunities that are brought on by substantial deleveraging in commercial real estate and a lack of capital in the middle market.”
As PERE previously reported, Fund II’s primary focus is on opportunities west of the Mississippi, although it has a US footprint. JCR will look at opportunities backed by various property types apart from those in the healthcare and assisted-living sectors.
“Our position is to provide capital to middle-market sponsors, but maintain senior positions in all these financings,” Rollins told PERE in an interview when it held a second close last year. The focus will be on short duration investments, ranging from six to 36 months. As a result, the fund will have a two-year investment period and a four-year term.
The fund held a first close of $35 million in October 2011 and a second close in November 2012, bringing its total to $85 million. To date, JCR has made 10 investments on behalf of Fund II.
Formed in 2006, JCR is led by former GMAC executives Rollins and Maren Steinberg, both of whom are managing this fund. In 2010, JCR closed its first fund on $30 million in commitments. Fund I is now fully invested and 71 percent realized.