DALLAS – Velocis Fund II, L.P. announced its first fund closing, accepting $64.9 million of capital commitments on October 30, 2014. Fund II will be open and will continue to accept capital commitments for 18 months, or until it reaches its targeted capital raise of $300 million. When incorporating moderate leverage of 65 percent, $300 million of equity will give Velocis Fund II approximately $850 million in purchasing power.
“We are quite pleased with our momentum and the strong show of support from Limited Partners at this early stage of our capital raise. We exceeded our initial fund raising goals just 60 days after launching and already have verbal commitments for an anticipated second closing before the end of 2014,” said Fred Hamm, Velocis managing principal. “This is in part due to the work we did in our previous fund by leveraging our experience and relationships to deploy capital and unlock hidden value in assets.”
Fund II will pursue a value-add strategy and will focus on office, medical office and retail properties in select U.S. growth markets.
“We are pleased with our investor feedback on our past performance and we strive to continue to meet or exceed our investment goals. Our team thoroughly understands office, medical office, and retail and we understand our markets, so we’re going to stay the course. We do anticipate acquiring slightly larger assets than we purchased previously, possibly including portfolios,” says Paul Smith, Chief Investment Officer.
The Fund will target financially distressed or under-managed U.S. real estate assets in the $20 to $70 million range where Fund principals can unlock value. The Fund anticipates securing 25 or more properties over a three-year investment period. Potential investors include institutional investors, large family offices, and high-net worth individuals in the United States, Mexico and Europe.
Velocis Fund II is led by a team of five seasoned principals who are directly responsible for the acquisition, asset management and disposition of assets. Joining Fred Hamm as principals in Fund II are Mike Lewis, Jim Yoder, Paul Smith and David Seifert.
Velocis has been active in real estate investment since 2011, purchasing 15 assets located in markets in Texas, Colorado, Georgia, Florida and North Carolina.
About Velocis, LLC
Velocis consists of real estate funds and Velocis Advisors, LLC. Velocis is active in the acquisition, operation/management, and disposition of commercial real estate in the United States. Velocis Advisors, LLC provides asset management and advisory services to both investors and real estate clients. Additional information about Velocis can be found at https://www.velocis.com/.