SUGAR LAND, Texas (July 17, 2019)– Velocis, a private equity real estate manager, has sold 77 Sugar Creek, a 143,410-square-foot Class A office building, to NorthStar Commercial Partners for an undisclosed price.
Located in Sugar Land, one, of Houston’s most sought-after suburbs, Velocis purchased the building in 2017, recognizing the future demands for quality office space in the submarket. Following a strategic repositioning, which included adding an additional 20 percent of occupancy from new tenants, Velocis sold the property in June at a 94 percent occupancy.
“77 Sugar Creek is a perfect example of the Velocis strategy,” said Velocis partner and co-founder Mike Lewis. “We identify assets in our high growth target markets that have dislocation relative to its peers in the submarket. The property had good bones but needed active management to reposition the asset, increase the NOI and then harvest the value. After implementing our repositioning initiatives, we were able to lease up the vacancy way ahead of schedule at rental rates as much as 30 percent above our underwriting achieving our upside underwriting.”
Over the 21-month hold, Velocis transformed the building, rebranding the property from Two Sugar Creek to 77 Sugar Creek. Velocis also upgraded common areas, restrooms and corridors, renovated the lobby and common areas and hired Stream Realty partners to lease and manage the property with an aggressive marketing campaign to reintroduce the much improved and repositioned asset to the market.
Dallas-based Velocis has been active in real estate since 2010, purchasing 30 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.
Velocis is a private equity real estate investment firm, active in the acquisition, operation/management and disposition of commercial real estate in the United States. 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.