JCR Capital has held a second close on its second commercial real estate finance fund. According to the Denver-based real estate investment firm, JCR Commercial Real Estate Finance Fund II has raised approximately $85 million of its $100 million target. The firm held a first close of $35 million in October 2011.
“We’ve reached enough critical mass to where we’re happy now,” Jay Rollins, managing principal at JCR, told PERE. A final close is anticipated on 15 January 2013.
Investors in the commingled vehicle include insurance companies, public pension plans and multiple fund of funds. JCR, which is accepting commitments of $5 million and more, has seen a 90 percent re-up rate from Fund I. Fundraising for Fund II is being run by placement agent Perth Advisors.
Announced in May 2011, Fund II is focused on financing distressed, opportunistic and value-added real estate investments in the US. Through the vehicle, the firm will invest in a diversified portfolio consisting primarily of debt, participating debt, preferred equity and pari passu equity positions in properties.
Although the new fund will have a US footprint, its primary focus will be on opportunities west of the Mississippi. 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 maintaining senior positions in all these financings,” added Rollins. 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 is targeting returns in the high teens to low 20 percent range. To date, JCR has made nine portfolio investments on behalf of Fund II, making the vehicle 40 percent invested. The most-recent deal on behalf of the fund was a senior loan on a multifamily asset in Houston that was 85 percent leased.
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, which is now 60 percent realised.