How It Works
The JCR Structure
8%
Preferred Return
60/40
LP / GP Profit Split
0%
Asset Mgmt Fee
Equity is returned upon a capital event such as refinance or sale. Acquisition, disposition, construction management, and refinance fees are nominal.
JCR profits only after investors receive their preferred return.
Why JCR Fees Are Lower
- Low overhead from a lean, experienced team.
- Shopping center operations scale efficiently across a larger portfolio.
- 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 Advantage
Retail (JCR Focus)
NNNLandlord responsible only for roof, structure, and parking lot.
Apartments
GrossLandlord responsible for toilets, plumbing, HVAC, electrical, and more.
Simpler management, lower fees, higher net yields.
Side by Side
How JCR Compares
vs. Typical Real Estate Funds
| JCR | Typical Fund | |
|---|---|---|
| Asset Mgmt Fee | 0% | 1–3% annually |
| Acq./Disp. Fees | Nominal | 1–2% typical |
| Promote | 40% after 8% pref | 20–40%, often lower pref or none |
| Transparency | 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 |
vs. Hedge Funds & Private Equity
| JCR | Hedge / PE | |
|---|---|---|
| Fee Base | Performance-driven | 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 |
vs. Crowdfunding Platforms
| JCR | Crowdfunding | |
|---|---|---|
| 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) |
| Alignment | GP profits after LP pref | GP profits via upfront & ongoing fees |