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Dallas-based Velocis buys downtown office building, plans renovations

For its first Nashville project, a Dallas-based real estate company bought an office building in the heart of downtown Nashville, with plans for significant renovations.

In a joint venture with Lincoln Property Co., Velocis bought the 232,194-square-foot complex at 211 Commerce Street. The purchase price wasn’t disclosed, but sources with knowledge of the deal said the figure was around $50 million.

Velocis is also putting $13 million into refurbishing the structure, which ranks among the largest downtown office buildings, according to Nashville Business Journal research. Construction is expected to start within 90 days and wrap up by year’s end, said Jim Yoder, a founding partner at Velocis.

“We think Nashville has become a haven for technology and financial services and maybe somebody who’s looking for a little more hip environment, and so we’re going to try to create that,” Yoder said.

This is Velocis’ first buy in Nashville. But the Texas-based firm has a significant stake in Austin, another popular tourist destination, and has been scouting Music City for a year or so trying to find the right project, Yoder said. He lists similarities between the two cities’ dynamics and energy, along with Nashville’s strong entertainment business, as attractions.

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Velocis Finds First Nashville Purchase in 211 Commerce

Class A office in the heart of Nashville to undergo multi-million-dollar capital improvement plan

NASHVILLE, Tenn. – (Feb. 25, 2021) – Velocis, a private equity real estate manager, has purchased 211 Commerce, a Class A 232,194-square-foot office complex in the heart of downtown Nashville.

The property – Velocis’ first purchase in the Nashville market – was purchased in a joint venture with Lincoln Property Company (LPC).

“Nashville is one of the country’s top markets for growth and relocation, and 211 Commerce is the ideal opportunity to take advantage of this momentum and positive market dynamics,” said Jim Yoder, Velocis partner. “Velocis is hyper focused on building a diversified and balanced portfolio by purchasing true value-add assets in elite locations. 211 Commerce has a tremendous framework to reposition the building into a more vibrant place to work at the gateway of Nashville’s trendiest neighborhoods.”

Velocis will implement a comprehensive $13 million capital improvement plan, including a full renovation of the main lobby, window glazing upgrades to improve natural light, outdoor plaza updates to upgrade tenant experiential spaces, and other value-add improvements including the addition of a new fitness center, conferencing space, ground floor retail and a tenant lounge.

Located at 211 Commerce Street, the property was built in 2000 and will be 28% leased when the largest tenant, Baker Donaldson, vacates at the end of March. This provides a unique opportunity for a new anchor tenant to brand the building with prominent top of building signage.

As joint venture partner, Lincoln Property Company, will provide property management, leasing oversight and construction management services throughout the repositioning. 211 Commerce is Velocis and LPC’s third joint venture together.

“211 Commerce is an iconic building on the Nashville Skyline.  Lincoln is thrilled to work alongside Velocis on the dynamic improvements to the building,” said Tyler Jones, executive vice president, Lincoln Property Company.  “Once the renovation is complete, the building will be reintroduced to the market as an ideal option for prospective tenants.”

JLL served as the broker for the sale representing the seller, BentallGreenOak, acting on behalf of its client, and has been selected to provide office leasing services. Ojas Partners will oversee retail leasing.

Dallas-based Velocis has been active in real estate since 2010, purchasing 35 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, Tennessee 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. Velocis partners include Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

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. 

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