Why Velocis Chose Dallas for Its Industrial Debut

Partner Paul Smith offers a full picture of the company’s recent decision to enter new territory.

As online shopping transitioned from “an option” to “first choice” for many end clients in the past few years, demand for space has skyrocketed. An increasing number of companies continue to enter the booming industrial sector and developers are barely keeping pace.

According to CommercialEdge data, almost 500 million square feet of industrial space was under development across the country as of July, with the Dallas-Fort Worth market leading the way, with 32.6 million square feet under construction.

Last month, Velocis kicked off its entry into the industrial sector with the acquisition of two development sites in the Dallas area. The company teamed up with Sumitomo Corp. of Americas to develop 850,000 square feet of Class A industrial space in the South Dallas and the Great Southwest submarkets of Texas. Partner Paul Smith offered Commercial Property Executive an in-depth view on the strategy behind this move.

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Velocis Enters Industrial Market

Velocis closes on its first two industrial development sites in DFW 

DALLAS, Texas – (July 8, 2021) – Velocis, a private equity real estate manager, has entered the industrial real estate market, recently closing on two development sites which will be developed into 850,000 SF of Class A industrial space in the South Dallas and GSW submarkets. Velocis partnered with Sumitomo Corporation of Americas on these investments. These are the first of several industrial investments Velocis plans to pursue with the wholly owned subsidiary of Tokyo-based Sumitomo Corporation. 

“The demand for industrial real estate, especially in Texas metro areas like Dallas-Ft Worth, is at an all-time high right now,” said Paul Smith, Velocis Partner. “We consider these first two transactions to be the first of many industrial investments with our client as we continue to evaluate opportunities locally and on a national level.”

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.  

About Sumitomo Corporation of Americas

Established in 1952 and headquartered in New York City, Sumitomo Corporation of Americas (SCOA) is the largest subsidiary of Sumitomo Corporation, one of the world’s leading traders of goods and services. With nearly 40 years of real estate investment and development experience in the U.S., SCOA maintains a diverse and balanced real estate portfolio with investments in commercial office buildings, multi-family communities, and master-planned developments.

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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Velocis Successfully Exits One Clearlake Office Tower in West Palm Beach, Florida

Sale follows the 221,079-square-foot tower’s repositioning as a Class A asset

WEST PALM BEACH, Fla. – (July 1, 2021) – Velocis, a private equity real estate manager, has sold One Clearlake, a 221,079-square-foot office tower in downtown West Palm Beach, Florida. 

Through its strategy of investing in value-add assets in the Sunbelt states, Velocis repositioned and transformed the 18-story One Clearlake from a Class B to a Class A asset to compete with other best-in-class properties in the competitive West Palm Beach CBD submarket. This repositioning allowed Velocis to capture one of the market’s largest tenants, Intech Investment Management. The office tower is currently 61% leased with other high-profile tenants including Mass Mutual, Prudential and Truist Financial Corporation, among others. 

“One of our core values is to pursue value-add assets in business-friendly environments that can support substantial job growth, and West Palm Beach is a perfect example of this. The pandemic has accelerated job growth in this coastal town, and Velocis was in a great position to capitalize on this momentum,” said Mike Lewis, Velocis partner. “Intech relocating to One Clearlake forever puts the office tower on the map and further upgrades the building’s profile.”

JLL served as the broker of the seller and procured the buyer, Tricera Capital, LLC. Additionally, JLL worked on behalf of the buyer to secure the acquisition loan for the property.

The JLL Capital Markets team representing the seller was led by Managing Director Ike Ojala, Senior Managing Director Hermen Rodriguez, Director Matthew McCormack and Associate Cody Brais.

Financing efforts were led by JLL Capital Markets’ Senior Managing Director Chris Drew, Director Maxx Carney and Brais.

“Downtown West Palm Beach is experiencing an ongoing revolution that is transforming it into the ‘Wall Street of the South,’” Ojala. “This submarket boasts the highest rental rates in Florida and exceptionally strong rental growth since 2013.”

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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West Palm Beach office tower sold for $61M

The 18-story One Clearlake Centre office in downtown West Palm Beach sold for $60.7 million.

Velocis Clearlake SPE LLC, a partnership between Velocis and CREC Capital, sold the 220,000-square-foot office at 250 S. Australian Ave. to a partnership of Miami-based Tricera Capital, Palm Beach-based NDT Development, Boston-based New England Development and Boston-based Rockpoint Group. The deal was brokered by JLL. The price equated to $276 a square foot for the offie space. It also includes a 669-space parking garage. 

One Clearlake Centre last traded for $42.3 million in 2017, so it gained in value. 

The tower was developed on the 2.9-acre site alongside a lake in 1987. 

Tricera Capital is also building the Press mixed-use project in West Palm Beach.

“We are very excited about the One Clearlake acquisition, and continue to be extremely bullish on the city and its long-term growth,” Tricera co-founder and Managing Principal Ben Mandell said. “The building’s location, quick easy access to the interstate, sublime water views, upscale finishes and flexible floor plates make OCL an ideal fit for any local, national or global company that desires to be in downtown West Palm Beach.”

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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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Velocis Makes 2nd Multifamily Acquisition

The company acquired a 240-unit community in Austin, Texas from Stratus Properties.

Velocis has completed the acquisition of The Saint Mary, a 240-unit Class A community in Austin, Texas. Stratus Properties sold the asset, which had an occupancy rate of 85 percent at the time of the deal.

Wildhorn Capital assisted the buyer in sourcing the purchase and will oversee management operations. Berkadia marketed the community on behalf of the seller. In June 2018, the developer financed the project with a $26 million loan from Texas Capital Bank, according to Yardi Matrix data.

Located on 14 acres at 7500 W. Slaughter Lane, the garden-style property encompasses 18 three-story buildings completed in 2019. The unit mix has one- and two-bedroom floorplans with sizes between 884 and 1,432 square feet. The amenity package includes a gym, a swimming pool, business center and open-air kitchen.

The current transaction marks Velocis’ second multifamily acquisition. Towards 2020’s end, the company acquired its first residential asset: the 201-unit Beverley community in Charlotte, N.C. Proffitt Dixon Partners sold the property for $53 million, Yardi Matrix data shows. Velocis received a $35.2 million acquisition loan from Prime Finance Partners for that purchase.

In December, Wildhorn Capital acquired Bradford Pointe, a 264-unit community in Austin, Texas. The company secured a $24.4 million Freddie Mac loan originated by CBRE.

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Velocis Purchases 240-Unit Multifamily Property in Southwest Austin, Texas

AUSTIN, Texas – (Jan. 13, 2021) – Velocis, a private equity real estate manager, has purchased The Saint Mary, a 240-unit Class A multifamily community in Southwest Austin.

Completed in 2019, The Saint Mary is located at 7500 W Slaughter Lane in Austin. The garden-style community features top-of-market unit features and community amenities, including a resort-style infinity edge pool, an outdoor kitchen and a state-of-the-art fitness center. The property is currently 85% leased.

“We’ve been looking to grow our portfolio in Austin for quite some time but were waiting for the right investment opportunity to arise,” said Jim Yoder, Velocis partner. “The Saint Mary has already experienced fantastic leasing momentum thanks to its Class A amenities, its location in one of the best housing markets in the area, and the fact that it is zoned to some of Austin’s highest rated public schools. We hope to build on that momentum through diligent management and marketing.”

Velocis will be working with Austin based Wildhorn Capital as their local operator for The Saint Mary. Wildhorn Capital also helped source the acquisition. The Saint Mary was built and sold by Austin-based Stratus Properties and marketed by Berkadia.

Velocis successfully closed on it first multifamily asset in Q4 2020 with the purchase of Beverley, a 201-unit, Class A apartment community in Charlotte, NC. The Saint Mary is Velocis’ second multifamily acquisition and further validates Velocis’ commitment to the multifamily space.

Dallas-based Velocis has been active in real estate since 2010, purchasing 34 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. 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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Ballantyne-area apartments trade to Texas real estate firm Velocis for $53M

More suburban apartments have sold in Charlotte, this time to an investor that recently entered the apartments acquisition space.

Dallas, Texas-based Velocis, a private equity real estate manager, has acquired the Beverley apartment property in the Ballantyne area, at 11926 N. Community House Road. Velocis paid $53 million for the 201-unit property, or a little more than $260,000 per unit.

This is the first apartment acquisition for Velocis, the company said. Much of its portfolio includes office buildings, although it also owns retail and mixed-use properties. In Charlotte, it also owns a data center in uptown.

As a few commercial asset classes have become more uncertain through the Covid-19 pandemic, some investors have begun buying, for the first time, apartment properties, as JLL and others have noted. Charlotte has seen a buying spree of apartments in the second half of 2020, especially in the suburbs. The sector has been widely viewed as more stable and resilient through the pandemic.

Beverley, which was developed by Charlotte-based Proffitt Dixon Partners, finished construction this year. The property was 71% leased at the time of sale. Beverley includes amenities like coworking spaces, a rooftop deck, saltwater pool, dog park, spa, fitness center and upscale interior finishes.

Jim Yoder, partner at Velocis, said in a statement the firm sees immense opportunity in the U.S. multifamily market but remains incredibly prudent in how it deploys capital.

“In fact, we looked at nearly 100 multifamily assets before finding the right fit with Beverley,” Yoder said. “As a new, high quality, top-of-market asset in the late lease-up stage, the fundamentals we found in Beverley will allow us to continue the property’s leasing momentum toward stabilization without renovation costs and the associated risk.”

JLL marketed the Beverley property.

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Velocis Makes First Multifamily Acquisition: 201-Unit Apartment Property in Charlotte

CHARLOTTE, NC – (Dec. 28, 2020) – Velocis, a private equity real estate manager, has made its first multifamily acquisition with the purchase of Beverley, a 201-unit mid-rise apartment community in Charlotte. Beverley was built in 2020 by Charlotte-based developer, Proffitt Dixon Partners and was lightly marketed to a select group of investors by JLL.

Responding to pandemic-driven changes in the US real estate market, Velocis has broadened its investment optionality by adding multifamily assets to its investment product offerings. As its first multifamily acquisition, Beverley represents an opportunity for the real estate manager to stay true to its value-add strategy while expanding into a new asset class.

“We see immense opportunity in the multifamily market across the country, but we’re still incredibly prudent in how we deploy capital. In fact, we looked at nearly 100 multifamily assets before finding the right fit with Beverley,” said Jim Yoder, Velocis partner. “As a new, high quality, top-of-market, asset in the late ‘lease up’ stage, the fundamentals we found in Beverley will allow us to continue the property’s leasing momentum toward stabilization without renovation costs and the associated risk.”

Beverley is located in Charlotte’s prime Ballantyne submarket, which has experienced tremendous recent growth with the relocation of major corporate employers to the area, along with Class A retail and the 2,000-acre Ballantyne master-planned community.

Beverley features top-of-market unit features and community amenities, including coworking spaces, a rooftop deck, a resort-style saltwater pool, dog park, spa, fitness center and luxury interior finishes. The property is currently 71% leased.

Dallas-based Velocis has been active in real estate since 2010, purchasing 33 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. 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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