JCR Capital has signed a $100 million separate account with an undisclosed institutional investor. Additionally, the Denver-based fund manager has held a first close on its second commercial real estate finance fund.
On behalf of the $100 million separate account, JCR will originate, underwrite and manage commercial real estate bridge loans. Loans for this new programme will be non-recourse and cover multifamily, industrial, office, retail, condominium and nonperforming loan pools. Although the new account will have a national footprint, its primary focus will be on opportunities west of the Mississippi.
Jay Rollins, president and chief executive of JCR, told PERE that the account will target returns of 7 percent to 8 percent. “Our origination platform was generating a lot of bridge loans that offered attractive returns on a risk-adjusted basis, but they did not meet the return requirements for our existing opportunity funds,” he said. “This new partnership will enable us to capitalise on the dislocation in the bridge loan market and will complement our fund product.”
Separately, JCR held a first close of $35 million earlier this month for its JCR Commercial Real Estate Finance Fund II. Announced in May, Fund II is focussed on financing distressed and opportunistic investments. It is targeting $100 million in equity commitments with a hard cap of $250 million. Fundraising for the vehicle is being run by placement agent Perth Advisors.
In 2010, JCR closed on its first fund, which is now fully invested.