JCR Capital closed more than $242 million in investments in 2016
Leading middle-market firm achieves record growth
JCR Capital, a Denver-based alternative investment manager focused on middle-market commercial real estate investments, closed more than $242 million investments during 2016, including nearly $95 million during the fourth quarter alone.
The closings represent 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, divesting 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 transaction.
Other large deals closed by JCR during 2016 include:
- $29.7 million acquisition of a 3-property business park in Anaheim, Calif.
- $26.6 million purchase of a 3-property portfolio of industrial properties in Phoenix, Ariz.
- $25.8 million purchase of a 3-property portfolio of industrial properties in Nevada
- $21.0 million acquisition of a 360-unit apartment building in Phoenix, Ariz.
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,” Rollins said. “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.”
About JCR Capital
JCR Capital is an alternative investment manager that provides capital solutions to middle market commercial real estate sponsors. Investing on behalf of insurance companies, public pension funds, endowments, foundations, family offices and high-net worth individuals, JCR Capital partners with sponsors whose transactions are in need of financing but are under-served by institutional capital. JCR Capital was founded by Jay Rollins and Maren Steinberg, who continue to manage the firm. For more information, visit jcrcapital.com/.