JCR Products

JCR Capital is a commercial real estate finance company that believes that significant opportunity has and will continue to emerge from:

• Dislocation of the credit markets
• Consolidation of real estate capital providers
• Closing/shrinking of the securitized lending market
• Term defaults on under performing real estate loans
• Decline in commercial real estate value
• Oversupply of residential land and condominiums

JCR Capital has two primary capital investment strategies.

Debt

Short to mid-term bridge loans with a defined exit strategy.

Security: LTV: Rate:  Fees: Term: Asset classes:

First trust 60-80% 10-15% 1-3% 6 months-2 years Income properties, condo inventory loans

Capital Appreciation Opportunities

Short to mid-term participating debt or equity investments that can provide capital appreciation.

Security: Co-investment: Term: Asset classes: Investor returns: Investment focus:

Partnership interests, preferred equity, participating debt 5-20% at the sponsor level 1-3 years Income properties, land, lots, condominiums and special situations 15-20% IRR’s and at least a 1.40x multiple Downside protection and upside potential

Underwriting Philosophy
Income Properties

• Exit NOI (how derived)
• Exit cap rate
• Exit loan constant
• Basis per square foot

For Sale Properties

• Sales price
• Recent comps
• Basis per foot/lot/unit etc.

We prefer deals that have been ‘pre-underwritten.”  We expect the mortgage banker or the sponsor to have pre-underwritten the transaction so they can easily speak to:

• Proposed deal structure
• Exit underwriting assumptions
• Proposed capital stack
• Proposed sources and uses

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