Velocis, along with Sumitomo Corp. and KBC Advisors have broken ground on a $40M Summit at Surprise, a 245KSF spec industrial facility in Surprise. Deutsch Architecture Group is the Architect and FCL Builders is the General Contractor. The project is expected to wrap up in about a year.
A couple of investors have been eyeing the Phoenix market as its population continues to explode. Now, they’re building their first industrial facility together in Arizona.
The presence of employers like Amazon has caught the attention of a group of investors that want to be part of the industrial boom in metro Phoenix.
Dallas-based Velocis has partnered up with Sumitomo Corp. of Americas and Seattle-based KBC Advisors to develop a 245,000-square-foot speculative industrial facility called the Summit at Surprise, just south of an existing Amazon facility. It will be the three firms’ fifth project together.
Velocis took over a 12-acre site in a $6.7 million land sale from investment firm Nuveen Real Estate, which had initially planned to develop the property after acquiring it last year but backed out amid tumultuous capital market conditions.
Dallas-based private equity fund manager Velocis broke ground on the Batavia Logistics Center, a 543,603-square-foot state-of-the-art cross-dock warehouse in the Fox Valley submarket west of Chicago.
The development is a partnership with SCOA Real Estate Partners (SREP), a fully owned subsidiary of Sumitomo Corporation of Americas. The project marks the fourth industrial development between Velocis and SREP in the past two years. A team of brokers led by Ryan O’Leary from KBC Advisors serves as the exclusive leasing agents.
“We are very proud to be partnering with SREP in developing this state-of-the-art facility within the critically important Chicago industrial market,” said Fred Hamm, Velocis Co-Founder and Managing Partner.
The fund will acquire limited partnership interests in real estate through the private secondary market.
Velocis has closed its latest fund, Velocis Secondary Partners III, which raised more than $170 million, exceeding its target by more than 70%.
The fund will acquire limited partnership interests in real estate funds and real estate assets through the private secondary market. The fund’s partners includes corporate pension funds, insurance companies, endowments, foundations, registered investment advisors, family offices, and high-net-worth individuals.
Velocis Secondary Partners III is expected to invest in a wide range of real estate property types, including industrial, multifamily, office, retail, data centers, hospitality, life science, medical office, senior housing, and single-family residential properties in the U.S., Asia, Europe, and Latin America. The fund’s strategy is to acquire limited partnership interests at favorable prices from sellers in need of liquidity.
Private equity real estate fund manager Velocis has closed on its latest fund after raising more than $170 million, exceeding its target by more than 70% and putting it in a position to buy a stake in real estate in high-growth markets throughout the world.
The Dallas-based firm’s newly raised fund, Velocis Secondary Partners III, gives it capital to acquire limited partnership interests or stakes in real estate funds and assets through the private secondary market, in which another investor sells a stake in its existing funds and assets. Like other real estate investors, Velocis has a history of investing in high-growth cities throughout the United States.
Investment manager Velocis has held a final close on $172 million of equity for its third fund targeting secondary-market real estate investments.
The Dallas-based fund operator wrapped up its capital campaign last week for Velocis Secondary Partners 3, above the vehicle’s $100 million to $150 million target. The unleveraged fund
is roughly 20% invested. Velocis doesn’t use a placement agent.
Fund 3 aims to produce an 18% return by investing in operator- and limited partner-led recapitalizations of funds and property portfolios. The dislocated capital markets are likely to provide investment opportunities as owners and vehicle managers hampered by the recent runup in interest rates seek liquidity.
The fund focuses on the U.S., with 80% of its equity set to be invested there, but it can also invest 10% apiece in Asia and Europe.
NASHVILLE, TENN. — Velocis, a private equity real estate investment management firm, has recently completed the $15 million renovation of Two Eleven Commerce, a 233,341-square-foot office building located at 211 Commerce St. in downtown Nashville. Velocis purchased the 11-story office tower in spring 2020 with Lincoln Property Co., the third joint venture between the two Dallas-based firms.
Built in 2000, the office building’s renovations include a two-story lobby with a new glass entry portal, contemporary conference center, integrated tenant lounge with indoor/outdoor seating, onsite catering kitchen and a fitness center with full locker rooms and showers. Other improvements throughout the office tower include upgraded and modernized elevators and elevator bays, exterior paint, new windows and a new gateless entry parking system in the building garage.
High-end spec suites among the 90k square feet of available space for lease
NASHVILLE – (Sept. 21, 2022) – Dallas-based Velocis, a private equity real estate investment management firm, recently completed a $15 million renovation at the 233,341-square-foot Two Eleven Commerce, at 211 Commerce St. in Nashville. Velocis purchased the 11-story Class A office tower in spring 2020 in a joint venture with Dallas-based Lincoln Property Company (Lincoln).
“Two Eleven Commerce is an iconic part of Nashville’s downtown, and we have been hyper-focused on renovating this great building from being a generic office tower to being an ideal option for prospective tenants,” says Jim Yoder, partner at Velocis. “These changes and added amenities complement the fabulous downtown location. Two Eleven Commerce is a great example of what company leadership desires in today’s flight-to-quality environment.”
The significant renovations and improvements include an enhanced two-story lobby with a new glass entry portal, as well as a contemporary conference center and integrated tenant lounge with indoor/outdoor seating and an on-site catering kitchen.
Additionally, the building, originally built in 2000, has a new fully equipped fitness center with highly finished full locker rooms and showers. Other improvements throughout the office tower include:
These renovations have contributed to several recent leases, including a 67,000-square-foot lease for recruiting firm IQTalent across the top three floors with top-of-building signage.
Additionally, the trendy, high-end global burger chain Black Tap Craft Burgers & Beer recently signed a lease at Two Eleven Commerce. The New York-based chain will bring its innovative burgers and shakes and lively atmosphere to the lobby in spring 2023.
“The ownership did an outstanding job with their improvements and it has paid off with our recent leasing activity,” says Sarah Pettigrew, JLL Executive Vice President, who is leasing the property with JLL colleagues Bill Adair and Ashley Marshall. “The opening of Black Tap will create an energized vibe on the ground floor, as well as provide a nice building amenity for our office tenants.
About 90,000 square feet is currently available including about 15,000 square feet of speculative office suites. “This space is ideal for companies looking for a downtown Nashville address in a modern space with walkable amenities,” Pettigrew adds. “There are a multitude of restaurant and nightlife opportunities within a few minutes’ walk of Two Eleven Commerce.”
Touted as North America’s largest food hall, the new Assembly Food Hall is just two blocks away at Fifth and Broadway, and the Riverfront Station for the WeGo Public Transit commuter rail station is just a three-minute walk from Two Eleven Commerce.
The property is Velocis’ first venture into the Nashville market. Lincoln, Velocis’ JV partner, has provided construction and property management services for the building since the acquisition. The facility is Velocis and LPC’s third joint venture together.
“Two Eleven Commerce has been transformed to a modern high-quality office where companies and their employees can go to work in collaborative spaces invigorated with high-end amenities,” says Lincoln Executive Vice President Tyler Jones. “The updated lobby, indoor/outdoor tenant lounge and fitness center provide an exceptional amenity base and the new windows will enhance natural light throughout the building.”
Dallas-based Velocis has been active in real estate since 2010 with a total of 50 projects located in Sunbelt markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, Tennessee as well as 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 Yoder, Mike Lewis, Fred Hamm, 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. Founded in 2010, Dallas-based Velocis has more than $2.5 billion of historical assets under management and has raised more than $1.1 billion of equity. With a focus on the major markets in the Sunbelt region, the company’s portfolio includes multifamily, healthcare, industrial, office and retail. The Velocis partners have over 160 years of collective real estate experience, currently leveraging their talents across multiple strategies and fund vehicles. Additional information about Velocis can be found at velocis.com.
About Lincoln Property Company
Lincoln Property Company (Lincoln), founded in 1965, is a privately-owned real estate firm offering a full-service platform that includes real estate investment, development, construction management, property management, leasing, asset management, and accounting services. With offices in all major markets across the U.S. and throughout Europe, Lincoln provides the depth and breadth of expertise needed to deliver successful projects worldwide. Lincoln’s cumulative development efforts have produced over 150 million square feet of commercial space and over 225,000 multifamily residential units. The firm is one of the Top 10 U.S. Developers of office, industrial, retail, and mixed-use properties, and the second-largest apartment manager in the country. Visit www.lpc.com for more information.
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, a Dallas-based private equity real estate manager, acquired the two-building Research Square at 1500 & 1550 Research Blvd. in the Shady Grove submarket of Rockville in a joint venture with Arlington, Virginia-based Altus Realty.
The acquisition includes 89,640 square feet of office space across two buildings on 7.45 acres, just west of Interstate 270. The Shady Grove submarket is the most sought-after biotech cluster within Maryland’s nationally recognized life science market. The traditional office space will be converted to life science and lab space, with construction scheduled to begin in January 2023.
This submarket consistently ranks as one of the top life sciences clusters in the U.S. The region is home to the headquarters of many distinguished national public health research and regulatory agencies including the National Institutes of Health (NIH), US Pharmacopeia, the Biomedical Advanced Research and Development Authority (BARDA) and the U.S. Food and Drug Administration (FDA), to name just a few.
Two-Building Research Square located in the desirable Shady Grove biotech cluster
ROCKVILLE, MD. – (July 27, 2022) – Velocis, a Dallas, Texas-based private equity real estate manager, acquired the two-building Research Square at 1500 & 1550 Research Blvd. in the Shady Grove submarket of Rockville, Md., in a joint venture with Arlington, Va.-based Altus Realty.
The acquisition includes 89,640 square feet of office space across two buildings on 7.45 acres, just west of I-270. The Shady Grove submarket is the most sought-after biotech cluster within Maryland’s nationally recognized life science market. The traditional office space will be converted to life science and lab space, with construction scheduled to begin in January 2023.
“The Shady Grove life science submarket currently has less than 1% vacancy rate, indicating that demand far outweighs supply,” said Velocis Partner Mike Lewis. “Existing lab product in the area rarely becomes available, so there are limited conversion opportunities available. This is due to building constraints and/or existing tenant encumbrances. There are also limited approved life science sites available for ground up construction. These dynamics continue to put pressure on rents, with newly delivered lab product leasing in the low $40s NNN, a nearly 60% increase since 2015.”
“This project has perfect bones for an immediate conversion to life science,” said Altus Realty Partner Al Troup. “We’ve been looking for the right opportunity within the I-270 Corridor for the past 24 months. This property possesses the base building attributes and location we think are required for an immediate transformation that will enable a speed to market in an area with strong pent-up demand for lab space. We look forward to partnering with our friends at Velocis.”
This submarket consistently ranks as one of the top life sciences clusters in the U.S. The region is home to the headquarters of many distinguished national public health research and regulatory agencies including the National Institutes of Health (NIH), US Pharmacopeia, the Biomedical Advanced Research and Development Authority (BARDA) and the U.S. Food and Drug Administration (FDA), to name just a few.
Maryland’s life sciences manufacturing sector expanded at one of the fastest rates nationwide (31%), with research and development (R&D) accounting for roughly two-thirds of total industry employment in the state according to the New Opportunities for Job Creation in Maryland’s Life Sciences Industry report released from The Milken Institute last October. The report further states that Maryland has the world’s largest cell therapy manufacturing facility and leads in global adult stem cell production and vaccine R&D, with 20% of the world’s top influencers in vaccine development operating in the region.
“A medical office was our first acquisition as a firm and a key part of our portfolio makeup,” Lewis added. “We have been looking for the right opportunity for a pure play in the life science space and feel very fortunate to acquire a true hidden gem with Research Square in the heart of the Shady Grove submarket.”
With construction starting in January, international architecture, design and planning firm, Gensler, has started blueprint drawings for the conversion.
“We are already deeply involved in the design stage to get an early jump on converting the buildings to have the right infrastructure to meet the tenant demand in this space. With high barrier-to-entry, there is an urgent need for great alternatives to keep pace with the growth demand. Research Square should deliver in a timely manner to help meet these needs and is poised for an expeditious lease up at market-leading rental rates,” Lewis noted.
Velocis and Altus Realty also partnered in 2018 to acquire Greensboro Park, a two-building 505,085-square-foot office complex at 8180 and 8200 Greensboro Dr. in Tysons, Va.
Dallas-based Velocis has been active in real estate since 2010 with a total of 50 projects located in Sunbelt markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, Tennessee as well as 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 Lewis, Fred Hamm, 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. Founded in 2010, Dallas-based Velocis has more than $2.5 billion of historical assets under management and has raised more than $1.1 billion of equity. With a focus on the major markets in the Sunbelt region, the company’s portfolio includes multifamily, healthcare, industrial, office and retail. The Velocis partners have over 160 years of collective real estate experience, currently leveraging their talents across multiple strategies and fund vehicles. Additional information about Velocis can be found at velocis.com.
About Altus Realty
Altus is a full-service real estate development and investment company based in Arlington, Va. From repositioning underperforming assets to developing ground-up projects, we focus on creating mixes of residential, office, retail and hospitality experiences that inspire. Our thoughtful, crafted approach to each project is guided by a strong vision grounded in the particular context of each site. We seek to elevate surrounding neighborhoods with each of our projects. Together with our investors, which range from major institutions to individuals, we are committed to building long-term relationships and value. Additional information about Altus Realty can be found at altusre.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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Media Contact:
Tonie Auer, Sunwest Communications
817.925.2013 tauer@sunwestpr.com
