DENVER, CO – JCR Capital, an alternative investment manager focused on middle-market commercial real estate investments, today announced its closing of more than $242 million investments during 2016, including nearly $95 million during the fourth quarter alone. The closing represents JCR’s growth through its strategic investments in middle market properties (those with valuations under $50 million), which has driven its total assets under management to more than $700 million. In addition, JCR had a record year in realizations, “round tripping” approximately $150 million at attractive returns.
“Our rapid growth during 2016, as evidenced by our record investment and realization volume, validates our investment strategy of focusing on undervalued middle-market properties” said Jay Rollins, managing principal of JCR Capital. “The increasing turnover of middle-market commercial properties due to aging demographics is the bedrock of our unique investment philosophy, which continues to provide substantial investment opportunities and attractive returns to our investors. While others lament a challenging investment environment, JCR’s investment opportunity set continues to grow.”
JCR’s fourth quarter investments included the $55.6 million acquisition of Brea Corporate Plaza and Brea Park Centre, a four-building office portfolio totaling 290,657 square feet in the Orange County community of Brea, Calif. JCR provided the majority of equity capital in the transactions.
Other large deals closed by JCR during 2016 include:
The transactions are indicative of the firm’s strategy of identifying and financing value-add or opportunistic middle market properties.
“Middle market assets frequently transact at less than peak value, often due to life events impacting their owners. These kinds of opportunities are exactly what we search for and can provide more attractive returns than investments in institutional assets, which tend to trade on more economic-driven factors,” added Rollins.
“By focusing on the middle market, we expect to continue to elevate JCR’s status as a leading commercial real estate investor throughout 2017 and beyond.”