DENVER--()--JCR Capital Investment Corporation (JCR), an alternative real estate fund manager, announced that it has invested approximately $5 million of joint venture equity to acquire 4 finished townhomes and 62 semi-finished townhome lots in East Los Angeles.
“As Fund II expands its equity program, we expect to take advantage of similar unleveraged equity investment opportunities with transaction sizes between $5 million to $50 million throughout the continental U.S.”
JCR’s funded this transaction through JCR Commercial Real Estate Finance Fund II, L.P. (Fund II), which invests debt and equity in middle market distressed, opportunistic and value added real estate transactions.
Fund II’s investment facilitated its joint venture partner’s REO acquisition of the property and provided funds to finish development of the existing lots. The business plan is to sell the existing townhome inventory, reduce Fund II’s basis in the finished lots, and sell the finished lots to a large regional or national homebuilder.
According to Jay Rollins, JCR’s CEO, “This investment fit our Fund II profile because these infill lots were purchased at less than 50% of the original debt amount. Moreover, there is no debt in this investment and we are investing with an experienced partner who is co-investing a significant amount of capital. This investment profile, along with the short term nature of the investment, is intended to provide high velocity, appropriate risk adjusted returns that our investors expect.”
Mr. Rollins went on to say, “As Fund II expands its equity program, we expect to take advantage of similar unleveraged equity investment opportunities with transaction sizes between $5 million to $50 million throughout the continental U.S.”
Fund II continues to raise capital until it hits its $100 million target capitalization by the end of 2012 and expects to have approximately 40% of its target capitalization invested by the end of October 2012.
JCR serves as general partner for both Fund II and JCR’s initial fund. JCR’s principals, Jay Rollins and Maren Steinberg, have worked together the past 20 years managing investments of approximately $1.8 billion in over 275 middle market commercial real estate transactions.
JCR is a full service real estate finance company. JCR provides capital to the middle market sponsors, and will provide equity, preferred equity, mezzanine debt, and bridge loan debt for value added and opportunistic transactions.
Nothing contained herein shall constitute an offer to sell securities.