Month: July 2016

The company – which has $400 million in property under management – plans to use the new fund to invest in up to $920 million in properties.

“In the six short years since Velocis was formed, we have raised approximately $415 million, leading to the acquisition of 21 assets across 10 markets,” managing principal Fred Hamm said in a statement. “We are grateful for the support of our investors and look forward to continuing our success as we secure assets, create value and maximize the return for our investors.”

Velocis’ Fund II is buying office, medical office, data center and retail properties priced from $20 to $70 million. They company expects to buy about 20 properties over a 3-year period.

Velocis investors include high-net-worth individuals, large family offices, and institutional investors in the United States, Mexico and Japan.

The company’s real estate is located in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington, D.C. area.

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Dallas — Velocis has closed its second fund with equity commitments exceeding $270 million, bringing Velocis Fund II assets under management to $400 million.

The current equity commitments provide Fund II with $775 million in purchasing power, incorporating moderate leverage. Management anticipates raising an additional $50 million of co-investment equity from investors, giving Fund II approximately $920 million in purchasing power.

“Clearly, having a successful preceding fund is key. We continue to do quite well in Velocis Fund I,” Fred Hamm, Velocis managing principal, told Commercial Property Executive. “Additionally, we believe we have a very good balance of high net worth, family office and institutional capital. We exert great effort towards all three investor classes. We’re very appreciative of the support we receive from our investors.”

Velocis Fund II is pursuing a value-add investment strategy across 10 markets and four product types: traditional office, medical office, data center and retail properties.

“We will deploy capital in major secondary markets like Phoenix, Denver, Dallas, Atlanta, Charlotte, and the D.C. Corridor, to mention a few,” Hamm said. “Although our acquisition pipeline is always active, we will continue to be very judicious as we invest our capital over the next three years.”

Velocis Fund II has already deployed 27 percent of its capital with two office assets in the Phoenix/Scottsdale market; two office assets in the D.C. Corridor; and one data center in Charlotte, N.C.

According to Hamm, a core principle of Velocis’ investment strategy is proper diversification and it looks at a lot of deals and maintains strict discipline before committing capital.

“Markets and various classes of commercial real estate behave differently along the cycle. Optionality gives us the flexibility to pursue opportunities in multiple markets and multiple product types,” he said. “As a result of this approach, we’re not forced to make something happen in a ‘hot’ market. With years of experience and meaningful relationships across the U.S., we have the ability to source outstanding opportunities that fit our investment strategy.”

Joining Hamm as principals in Fund II are Mike Lewis, David Seifert, Paul Smith and Jim Yoder.

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Velocis, a Dallas-based private equity real estate manager, successfully closed its Velocis Fund II. Equity commitments exceeded $270 million, bringing Fund II assets under management to $400 million.

The current equity commitments provide Fund II with $775 million in purchasing power, incorporating moderate leverage.

Management anticipates raising an additional $50 million of co-investment equity from investors, giving Fund II approximately $920 million in purchasing power.

Fund II has purchased five assets and anticipates securing approximately 20 properties over a three-year investment period. Its most recent purchase was a $39 million buy last month of a three-building office portfolio in Phoenix, Arizona.

Fund II is currently 27% invested and is continuously sourcing new assets for purchase.

“We believe our industry experience, relationships and proven ability to unlock value in select real estate assets were integral to a successful Fund II capital raise,” said Fred Hamm, Velocis managing principal. “In the six short years since Velocis was formed, we have raised approximately $415 million, leading to the acquisition of 21 assets across 10 markets.”

Fund II is pursuing a value-add strategy focused on traditional office, medical office, data center and retail properties in select U.S. growth markets. The fund targets under-managed and distressed assets in the $20 million to $70 million range.

The fund is specifically sized to acquire a diversified portfolio of assets that may be too large for individual investors, but too small for many large institutional investors.

Investors include high-net-worth individuals, large family offices, and institutional investors in the United States, Mexico and Japan.

Velocis has been active in real estate investment since in 2010 making investments in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington DC metropolitan area.

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DALLAS – Velocis, a private equity real estate manager, today announced the successful closing of Velocis Fund II. Equity commitments exceeded $270 million, bringing Fund II assets under management to $400 million.

“We believe our industry experience, relationships and proven ability to unlock value in select real estate assets were integral to a successful Fund II capital raise,” said Fred Hamm, Velocis managing principal. “In the six short years since Velocis was formed, we have raised approximately $415 million, leading to the acquisition of 21 assets across 10 markets. We are grateful for the support of our investors and look forward to continuing our success as we secure assets, create value and maximize the return for our investors.”

The current equity commitments provide Fund II with $775 million in purchasing power, incorporating moderate leverage. Management anticipates raising an additional $50 million of co-investment equity from investors, giving Fund II approximately $920 million in purchasing power. Fund II is currently 27 percent invested and is continuously sourcing new assets for purchase.

Fund II is pursuing a value-add strategy focused on traditional office, medical office, data center and retail properties in select U.S. growth markets. The Fund targets under-managed and distressed assets in the $20 to $70 million range. Fund II has purchased five assets and anticipates securing approximately 20 properties over a three-year investment period.

The Fund is specifically sized to acquire a diversified portfolio of assets that may be too large for individual investors, but too small for many large institutional investors. Investors include high-net-worth individuals, large family offices, and institutional investors in the United States, Mexico and Japan.

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, David Seifert, Paul Smith and Jim Yoder.

Velocis has been active in real estate investment since launching Velocis Fund I in 2010. Since then, Velocis has raised approximately $415 million of equity commitments and purchased 21 assets located in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington, D.C. metropolitan area.

About Velocis

Velocis consists of two entities: Velocis Funds and Velocis Advisors. Velocis Funds are private equity real estate funds, active in the acquisition, operation/management, and disposition of commercial real estate in the United States. Additionally, Velocis Advisors provides asset management and advisory services to both investors and real estate clients. Additional information about Velocis can be found at velocis.com.

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Velocis, a private equity real estate fund, has purchased Park One, a three-building, multi-tenant, Class-A office development totaling 205,000 square feet in the Camelback Corridor in metropolitan Phoenix.

A team of brokers including Barry Gabel, Chris Marchildon, and Kevin Shannon represented the seller, a joint venture between California-based McCarthy Cook & Co. and New York-based Morgan Stanley Real Estate. CBRE’s Capital Markets’ Debt and Structured Finance team, including Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart, worked on behalf of Velocis and the lender, providing debt financing for the purchase.

“Park One is ideally located in the Camelback Corridor, which is one of the most desirable office markets in metropolitan Phoenix,” said Mr. Gabel who is with CBRE’s Phoenix office. “Park One offered Velocis the opportunity to buy a newly renovated, TOBY award-winning, income-producing property, located in the heart of the Camelback Corridor at a substantial discount to replacement cost.”

According to CBRE Research, the Camelback Corridor has the highest average rental rates and property values in Phoenix. CBRE Econometric Advisors ranks the Camelback Corridor as a top-10 office submarket for rent growth, forecasting 6.3 percent average annual rent growth over the next three years.

“This is Velocis’ second office building acquisition in the Phoenix/Scottsdale market working with Barry Gabel and his team,” said Paul Smith, principal, Velocis. “We like the office market fundamentals and the strong job growth currently taking place in the Valley.”

Jim Yoder, principal, Velocis adds, “An institutional quality asset like Park One is a great fit for our acquisition strategy. We look forward to unlocking hidden value with additional capital improvement projects and an enhanced customer and tenant experience.”

Park One is located at 2111, 2121 and 2141 E. Highland Avenue in Phoenix. The property was 84 percent leased at time of sale and features a diverse tenant roster that includes various law firms, financial advisors, engineers and other professional services firms.

Situated within a park-like campus environment, Park One features a private two-acre lake, landscaped paths and bridges and abundant outdoor seating areas. The property also includes a freestanding restaurant/sports bar, a café and an on-site fitness center that was recently renovated in 2014 with new equipment and both above grade and below grade covered parking.

Park One is Velocis’ second acquisition in the Phoenix market. In 2015, the Fund purchased Camelback Square, a three-story Class-A office project in the heart of Old Town Scottsdale.

Velocis, has been active in real estate investment since 2011, purchasing 21 assets located in markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. Velocis is led by a team of five seasoned principals who are directly responsible for the acquisition, asset management and disposition of assets.

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Texas-based Velocis LLC bought the three-building Park One office development. The complex is at Highland Avenue and 21st Street in the Camelback Corridor submarket.

“Park One is ideally located in the Camelback Corridor, which is one of the most desirable office markets in metropolitan Phoenix,” Gabel said.

Velocis bought the Camelback Square office development in 2015.

“This is Velocis’ second office building acquisition in the Phoenix/Scottsdale market working with Barry Gabel and his team,” said Paul Smith, principal, Velocis. “We like the office market fundamentals and the strong job growth currently taking place in the Valley.”

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