JRG's Investment Philosophy

Mission

Vision

JGR’s mission is to build generational equity for itself and its partners.

JGR’s vision is to have a strong portfolio of real estate assets so that JGR and its partners can prosper financially for generations to come.

Investment Philosophy

Our business is to invest in the acquisition of selective real estate assets to generate income and capital appreciation for their owners.

Investment Objectives

We seek properties that offer the opportunity to invest on favorable terms. We look to add value to the properties by making improvements, repositioning, marketing, developing, regulatory entitlement, and/or financing. For example, a property may be made more valuable by improving its appearance, reducing its operating expenses or expanding its capacity; or by catering to a more upscale market segment or by more effective marketing; or, in the case of a vacant or underutilized property, by erecting an income-producing building; or by arranging a zoning change or filing a petition under rent-control; or by negotiating more favorable financing.

We seek a combination of assets producing both current cash flow and potential for capital appreciation. Not every asset will offer the same combination of these characteristics; in fact, some assets may be skewed far in the direction of either current cash flow or potential for capital appreciation. By a combination of assets with different characteristics, however, we offer both current cash flow and a potential for capital appreciation.

Property Types

We will consider any type of commercial real estate. Commercial real estate can include office, retail, multi-family, industrial or special purpose property. Commercial real estate can also include vacant land, provided the land can be used for commercial development. The essential characteristic of commercial real estate is that the purpose is to generate income for partners.

Geographic Range

We focus our activities in the Central Valley of California, Saint Louis, Missouri, and Dallas, Texas. We have complete teams and systems in place in these locations, from management to banking.

Within these metropolitan areas, there are both strong and weak locations. The characteristics vary by the type of assets under consideration. Economic and population growth have continued to trend in the right direction, and we still see a lot of growth left.

Investment Size

We target to raise a cash amount in the range of $500,000 – $2 million, per partnership. Our target level of cash commitment per partnership is large enough to be above the range of most ‘mom & pop’ buyers and, at the same time, small enough to be below the range of most institutional investors. Where the array of potential competitors is limited, returns are typically greater. Assets requiring that amount of cash allow us to play in a different field. JGR’s experience and banking relationships will enable us to be competitive and profitable.

Time Frame

JGR usually expects a two-year stabilization period. This time is used to implement our strategy on a particular property. From new construction to complete remodels. In year three, we aim for stabilization. At the end of year five, we look to cash out refinance if economic conditions are favorable. We look to hold and maintain the asset for the foreseeable future. We want our partners to pass their stake in the partnership down to the next generation.

Investment Structure

Each JGR fund is a unique limited partnership. JGR assumes the role of the general partner and manages the day-to-day operations. Depending on the funding size, equity is assigned to limited partners. Each limited partner receives quarterly reports and payouts in proportion to each partner’s equity stake, given a profit to disburse for the quarter. At the end of the year, each partner receives a K-1. This structure also allows partners to capitalize on tax benefits.