SAN DIEGO – JCR Capital (JCR), a Denver-based real estate finance company, announced that its JCR Capital Commercial Real Estate Finance Fund III, L.P. (Fund III) has made a $5.91 million joint equity investment for the acquisition of an 8.75-acre site in the San Carlos neighborhood of San Diego. The property is zoned residential and will be platted into 50 residential lots before being sold in bulk to a regional or national homebuilder.
The property was purchased from the local school district, which has not operated on the property since 1983.
The sponsor is an Orange County, California-based firm that invests in real estate projects in infill Southern California markets. The majority of their projects involve land entitlement for single-family subdivisions. Regionally, the property is located within a 30-minute drive of several significant employment centers including downtown San Diego, Mission Valley, Kearny Mesa, and Miramar. The Property is accessible to both California State Route 125 and Interstate 8.
“This investment opportunity is attractive because it is a business plan we have executed several times before, in a market that is constrained for infill residential lots,” said Jay Rollins, JCR’s CEO. “This location is highly desirable and is well located within the submarket.”
To date, Fund III has committed over $106 million of capital to investments on 37 assets located in 13 states. In line with the prior JCR funds, Fund III is credit focused with a mandate of protecting principal while providing investors with excellent risk adjusted returns, including current pay and profit participation components. Fund III targets short duration investments, typically six to 36 months, in multifamily, retail, industrial, office, and finished lots using a diversified mix of senior debt, participating debt, and structured equity positions.
JCR, founded in 2006 and initially focused on distressed transactions, has transitioned to a “full cycle” finance company providing capital solutions with bridge loans, preferred equity, mezzanine loans and joint-venture equity for value added, distressed, and opportunistic transactions to middle market sponsors.
JCR is managed by Jay Rollins and Maren Steinberg, JCR’s Managing Principals. Since 1992, throughout several real estate cycles, this team has successfully invested over $2.0 billion in over 300 middle market commercial real estate transactions across three platforms — with less than a one percent principal loss ratio.
Mr. Rollins is author of the book, Commercial Real Estate Uncovered, a handbook for real estate finance and investment. He is a recognized industry leader and is a featured speaker and guest lecturer at numerous industry events and colleges and universities. Mr. Rollins is best known for calling the top of the commercial real estate market in 2007.
This communication is for informational purposes only and intended for our non-advisory loan origination and servicing clients only. As such, nothing herein is an offer or solicitation for the purchase or sale of any security, may not be relied upon in connection therewith, and is qualified in its entirety by any related Private Placement Memorandum and Partnership Agreement. An investment in a private real estate fund involves a substantial degree of risk and investors could lose some or all of their investment. SEC registration does not imply any particular level of skill. Any market data is third-party information and uncorroborated. Loan terms are subject to change.