JCR Investment Structure
A Smarter Way to Invest in Real Estate: Focused on neighborhood necessity retail with transparent, deal-specific investments—no middleman or fund overhead.
The JCR Structure
- 6% preferred return to investors.
- 65/35 profit split (LP/GP) after the preferred return.
- Equity returned upon a capital event such as refinance or sale.
- Market/nominal acquisition, disposition, construction management, and refinance fees.
- JCR profits only after investors receive their preferred return.
Why JCR Fees Are Lower
- Low overhead from a lean, experienced team.
- Scalability of shopping center operations enables efficiency at scale.
- Triple Net Lease (NNN) model means tenants pay taxes, insurance, and maintenance.
- Retail properties are simpler to manage than multifamily or mixed-use assets.
The Triple Net (NNN) Advantage
Retail (JCR Focus)
Landlord responsible only for roof, structure, and parking lot.
Apartments
Landlord responsible for toilets, plumbing, HVAC, electrical.
Result: Simpler management, lower fees, and higher net yields.
How JCR Compares
JCR vs. Typical Real Estate Funds
| Category | JCR Companies | Typical Fund |
|---|---|---|
| Asset Mgmt Fee | 0% | 1-3% annually |
| Acquisition/Disposition Fees | Nominal | 1-2% typical |
| Promote | 35% after 6% pref | 20-40%, often after lower pref or none |
| Investor Liquidity | Deal-by-deal clarity | Pooled, less transparent |
| Overhead | Lean, in-house | Large staff, marketing overhead |
| Focus | Necessity retail (NNN) | Multifamily / mixed |
| Target IRR | 15%+ | 8-12% after fees |
JCR vs. Hedge Funds & Private Equity
| Factor | JCR | Hedge Funds / Private Equity |
|---|---|---|
| Fee Base | Performance-driven | Fee-heavy (2% mgmt + 20% carry) |
| Transparency | Direct property ownership | Layered fund structure |
| Liquidity | Asset-based, clear exits | Locked capital, blind pools |
| Risk Profile | Hard asset-backed | Market-dependent |
| Alignment | LP-first returns | GP fees regardless of performance |
JCR vs. Crowdfunding Platforms
| Factor | JCR Companies | Crowdfunding Platform |
|---|---|---|
| Asset Mgmt Fee | None | 1-2% annually |
| Equity Raise | Direct to investors | Through marketing campaigns |
| Transparency | Single-property investments | Pooled, blind-fund approach |
| Overhead | Low (lean team) | High (marketing, staff, ads) |
| Investor Alignment | GP profits after LP pref | GP profits via upfront & ongoing fees |