JCR Capital Provides $4.9M Equity Financing on Condominium Complex
JCR Capital, a Denver-based commercial real estate finance fund manager, has provided Lexin Capital with approximately $4.9 million to expedite the closing on a condominium complex in Scottsdale, Ariz.
New York-based Lexin acquired the complex as REO from a regional bank in March for a little more than $6 million. The project is 95% finished and Lexin will complete interior finishes such as flooring and appliances.
The Veritas complex consists of 30 three-bedroom units and six two-bedroom rooms in nine total buildings. The units average 1,918 square feet and they all have two-car garages.
The firm plans to begin actively marketing units within 60 days. Sales prices for the units will be half below the original sales projections of the previous owner.
Funding for this acquisition came from JCR’s Commercial Real Estate Finance Fund I initiated in 2010. This fund, which is currently over 75% invested, provides support for debt, participating debt, preferred equity and equity to distressed and opportunistic real estate transactions.
“We liked the Veritas transaction because of the asset’s location, the quality of the asset, our cost basis and the overall recovery of the Scottsdale market,” said Jay Rollins, managing principal of JCR Capital. “We also think highly of Lexin as a sponsor.”
The two businesses have also formed a $15 million joint venture acquisition facility for “quick close” opportunities to purchase distressed notes and bank REO. This venture allows Lexin to close on transactions in as little as two weeks, which provides the company an advantage when working with sellers.
The Veritas acquisition represents the third transaction for the facility, and both firms are currently seeking more acquisition opportunities targeting residential assets, including condominiums, homes and residential lots.