Tall, waterview office tower in WPB will get some love

One Clearlake Centre just sold to Velocis, a private equity real estate manager, in partnerhip with CREC, a Miami-based real estate company.

The 18-story, 218,461-square-foot tower is at 250 S. Australian Ave., just east of Interstate 95. A sales price could not immediately be obtained.

At a time when business and city leaders say they need more high-quality downtown office space to lure employers, One Clearlake Centre provides an opportunity to provide more choices, said Andrew Remick, CREC vice president.

Millions of dollars in improvements will be made to the building, including upgrades to the lobby, corridors, bathrooms plus a new conference center. The upgrades should be completed within the next 12 to 18 months.

“We’re trying to meet the market demand for Class A space, but at more competitive leasing rates,” Remick said.

There’s plenty of vacant space to work with at Clearlake. The property is only 47 percent occupied, meaning about 100,000 square feet is available for lease. This includes entire floors.

Some of that vacancy is being created by Shoes for Crews, which has 37,657 square feet of space in the building on three floors but is moving to Boca Raton early next year.

CREC plans to break up some of the Clearlake’s floors into small, ready-to-occupy offices. This will allow it to meet demand from what Remick says is the main business tenant in West Palm Beach: Small users needing between 2,500 to 5,000 square feet of space.

Gross rents, which include rent plus all maintenance expenses, now are at about $34, far less than buildings along the Intracoastal Waterway. The rents are expected to inch up after the redo, but still will be far less than other office towers, Remick said.

One Clearlake offers water views, both of Clear Lake to the east and also, at higher levels, of the Intracoastal to the east.

Even better, Remick said, is that the property is away from the traffic crowding downtown streets.

From I-95, it’s a quick turn onto Australian Avenue to arrive at the office tower.

“And there’s no traffic lights, either” he added

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Velocis Snags WPB Office Tower

Velocis has completed the purchase of One Clearlake Centre, a 218,461-square-foot, Class A office tower in West Palm Beach, Fla. Joint venture partner CREC will provide management and marketing services at the 18-story property. CBRE represented the seller, AEW Capital Management, in the transaction, while also procuring acquisition financing on behalf of the borrower/buyer.

The new ownership plans to invest into a multi-million-dollar capital improvement project and implement an active marketing program. Renovations at One Clearlake Centre will include new public spaces such as lobbies, corridors and bathrooms, as well as the creation of a tenant lounge and a new conference center. In addition, the modernization plan will entail the development of multiple spec suites to cater market demand for move-in-ready spaces.

“Green” office environment

The LEED Silver certified asset sits on a 2.9-acre site at 250 S. Australian Ave. and was completed in 1986. The property features 24/7 on-site security, conference center, on-site café and a five-story, 662-space parking garage. According to Yardi Matrix, One Clearlake Centre underwent significant upgrades under previous ownership in 2008 and is ENERGY STAR-rated.

Vice Chairman Christian Lee and Senior Vice President José Lobón of CBRE’s Capital Markets team worked on behalf of AEW, while Amy Julian, vice president in CBRE’s Debt and Structured Finance division, represented the buyer in financing the transaction. The property previously traded in 2005, when AEW acquired it for $38.6 million from VEF Advisors, Yardi Matrix shows.

One Clearlake Centre provides access to Interstate 95 and offers proximity to Clematis Street, CityPlace, restaurants, several shopping and entertainment venues, TriRail and the newly constructed Brightline station.

“At just 47 percent leased, One Clearlake Centre offers Velocis the opportunity to acquire a well-located, Class A asset at a significant discount to replacement cost,” said Mike Lewis, Velocis principal, in a prepared statement. “A planned, strategic repositioning program will bring this property in line with market standards, increasing its attractiveness to tenants. Having a local joint venture partner in CREC increases our confidence in this building’s potential,” he added.

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Velocis Adds to Its San Antonio MOB Portfolio

Velocis announced the purchase of Legacy Oaks, a 224,262-square-foot, Class A medical office complex located directly adjacent to San Antonio’s 900-acre South Texas Medical Center. The private equity real estate manager made the acquisition through its Velocis Fund II.

Strategy to increase occupancy

The complex consists of seven recently renovated buildings and is currently 75 percent leased by a mix of health care providers, including Baptist Health System, MEDNAX, BB&T and the Center for Healthcare Services. Velocis plans to implement a new management and leasing strategy with a market-oriented approach enhanced by physical improvements.

“This asset is one that checked all of the boxes for us in terms of our value-add investment strategy,” Mike Lewis, Velocis principal, said in prepared remarks. “The previous owner did an excellent job of laying the groundwork for the property’s long-term success. Building on their momentum, we plan to increase occupancy by providing fresh capital for physical enhancements, tenant improvements and leasing commissions.”

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Velocis Purchases One Clearlake Centre Office Tower in West Palm Beach

WEST PALM BEACH, Fla. – (July 20, 2017) – Velocis, a private equity real estate manager, in partnership with CREC, a leading, full-service commercial real estate company, today announced the acquisition of One Clearlake Centre, a Class A, 218,461-square-foot office tower in West Palm Beach, Fla. Located at 250 South Australian Avenue, the 18-story tower sits in the heart of West Palm Beach’s re-emerging downtown core.

“At just 47 percent leased, One Clearlake Centre offers Velocis the opportunity to acquire a well-located, Class A asset at a significant discount to replacement cost,” said Mike Lewis, Velocis principal. “Downtown West Palm Beach is experiencing an urban renaissance that makes this an opportune time to make a value-add investment in the market. A planned, strategic repositioning program will bring this property in line with market standards, increasing its attractiveness to tenants. Having a local joint venture partner in CREC increases our confidence in this building’s potential.”

Plans for the building include a multi-million-dollar capital improvements program, focused on updating the 1980s-era building and implementing an active marketing program. Major upgrades will include new public spaces such as lobbies, corridors and bathrooms, as well as the creation of a modern tenant lounge and conference center. The establishment of multiple spec suites will also cater to market demand for small, move-in ready spaces.
Velocis has partnered with CREC, Florida’s leading, independent, full-service commercial real estate firm, to provide leasing and management services for One Clearlake Centre.

“The acquisition of this high-potential property enhances our growing portfolio of prime assets under the CREC brand,” said CREC President and Co-Founder Carol Greenberg Brooks. “We identified One Clearlake Centre with the foresight to re-introduce a quality product in the Palm Beach submarket, with newly-positioned office lease offerings that will draw substantial interest.”

As one of the tallest buildings in the market, the 18-story One Clearlake Centre affords tenants an ideal location in the heart of Downtown West Palm Beach, with panoramic views of Clear Lake, the city skyline and Atlantic Ocean. Its easy access to and from Interstate 95 provides tenants with efficient ingress/egress, as well as proximity to Clematis Street, CityPlace, the area’s hottest restaurants, shopping and entertainment district, TriRail and the newly-constructed Brightline station.

Built in 1986, the property includes a 5-story, 662-space parking garage. One Clearlake Centre is LEED Silver certified and EnergyStar rated.
CBRE’s Christian Lee and José Antonio Lobón represented the seller. CBRE’s Amy Julian represented the buyer in financing the transaction.

Dallas-based Velocis has been active in real estate investment since 2011, purchasing 24 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. Principals in Fund II are Fred Hamm, Mike Lewis, David Seifert, Paul Smith and Jim Yoder.

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.

About CREC
CREC is the leading, independent, full-service commercial real estate company in Florida with offices throughout the state of Florida. Since its founding in 1989, CREC has provided fully-integrated real estate services, including brokerage, leasing, management, tenant representation, receiverships, workouts, as well as debt and equity financing. The company continues to uphold its mission of being “Your Florida Partner” through its commitment to providing clients with unrivaled service and a streamlined approach. Through the years, CREC has built a portfolio of more than 13 million square feet across 100-plus properties throughout Florida. For more information, visit www.crec.com.

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment.

Velocis Purchases Class A Medical Office Complex in San Antonio

SAN ANTONIO, Texas – (July 20, 2017) – Velocis, a private equity real estate manager, through its Velocis Fund II, has purchased Legacy Oaks, a 224,262-square-foot, Class A medical office complex located directly adjacent to San Antonio’s 900-acre South Texas Medical Center.

The seven-building complex, which recently underwent extensive capital improvements, is currently 75 percent leased by a mix of health care providers, including Baptist Health System, MEDNAX, BB&T, and the Center for Healthcare Services.

“This asset is one that checked all of the boxes for us in terms of our value-add investment strategy,” Mike Lewis, principal, Velocis. “The previous owner did an excellent job of laying the groundwork for the property’s long-term success. Building on their momentum, we plan to increase occupancy by providing fresh capital for physical enhancements, tenant improvements, and leasing commissions.”

To unlock value, Velocis plans to implement a refreshed management and leasing strategy with a market-oriented approach enhanced by key physical improvements.

Dallas-based Velocis has been active in real estate investment since 2011, purchasing 23 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. Principals in Fund II are Fred Hamm, Mike Lewis, David Seifert, Paul Smith and Jim Yoder.

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.

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment.