JCR Capital, a Denver-based commercial real estate finance company, has announced its first closing of the JCR Capital Distressed & Opportunistic Real Estate Fund I LP.
The initial closing included a $5 million entity-level commitment to JCR and $17 million in investment capital to the fund. The fund has three ‘anchor investors,’ JCR says: Greenwich, Conn.-based PartnerRe Capital Markets Corp. (a subsidiary of reinsurance company PartnerRe Ltd.); JAM Equity Partners, a private equity firm based in New York and Los Angeles; and Branzan Investment Advisors, a Denver-based money manager.
The fund will remain open for 90 days to accommodate a number of investors who have indicated interest, as well as new investors, to allow JCR to reach its targeted fund size of $25 million to $30 million, the firm says.
"The fund's strategy is to be a provider of capital to the commercial real estate industry, as opposed to being a buyer of assets," says Jay Rollins, president of JCR. "The fund will provide debt, participating debt, preferred equity and equity to distressed and opportunistic real estate transactions.
The fund will focus on smaller transactions ranging from $1 million to $10 million.
‘We believe there is more opportunity in smaller transactions at this time," Rollins adds. "There is less competition, and exit strategies are easier to achieve, because there is more liquidity in the small-balance market.’
SOURCE: JCR Capital