Velocis, a Dallas-based private equity real estate manager and the Bethesda, MD-based Moore & Associates, purchased Shirlington Tower, in Arlington, VA, for an undisclosed price.
Tower Goes From Underperforming to Upgraded
DALLAS—Velocis purchased the property in 2012 and invested $1.5 million in property renovations, with substantial upgrades made to all six floors of the building and the parking garage, which resulted in positioning for a recent sale.
DALLAS—Built in 1985, Magnolia Medical Tower is adjacent to Baylor All Saints Medical Center. This location offers access to Cook Children’s Medical Center, Texas Health Harris Methodist Hospital Fort Worth and Plaza Medical Center of Fort Worth, as well as medical offices in the surrounding downtown medical district.
Velocis, a private equity real estate manager, purchased the property in 2012, and invested $1.5 million in property renovations, with substantial upgrades made to all six floors of the building and the parking garage. Renovations included modernizing the building’s elevators and upgrading common areas, applying new corridor finishes, upgraded lobby areas and reconstructing restrooms, as well as signage, mechanical and lighting updates to improve energy performance.
“Velocis recognized that it was in need of substantial capital improvements and professional management,” said Jim Yoder, Velocis principal. “The significant upgrades we implemented took the building from class-C-minus to B-plus and helped increase the leasing velocity at the property.”
Velocis recently sold the 89,991-square-foot medical office building located in the heart of the Fort Worth Medical District. Ridgeline Magnolia MOB LP purchased the property for an undisclosed price. Ridgeline will build off the upgrades made by the prior owner and plans to make minor improvements.
CBRE’s Lee Asher and Chris Bodnar of the US Healthcare Capital Markets Group partnered with Austin Barrett in the Dallas/Fort Worth market to broker the sale on behalf of Velocis. The buyer was unrepresented.
“When Velocis acquired this asset, it was underperforming, but very well located in the heart of the Fort Worth medical district,” Yoder tells GlobeSt.com. “By investing in significant property upgrades, we were able to achieve rental rates at or above our acquisition underwriting. In addition, we were successful in our efforts to enhance the rent roll by leasing space to a broader offering of medical practices which improved tenants’ referral patterns, helping to ensure the financial stability of the asset going forward.
”Dallas-based Velocis has been active in real estate investment since 2011, purchasing 21 assets located in major markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. Velocis is led by a team of five principals who are responsible for the acquisition, asset management and disposition of assets. In addition to Yoder, principals are Fred Hamm, Mike Lewis, David Seifert and Paul Smith.
DFW Deal Sheet – Velocis sold Magnolia Medical Tower
Velocis sold Magnolia Medical Tower, a 90k SF medical office building in Fort Worth’s medical district. Ridgeline Magnolia MOB purchased the property for an undisclosed price. CBRE’s Lee Asher and Chris Bodnar partnered with Austin Barrettto to broker the sale on behalf of Velocis.
Magnolia Medical Tower Trades Hands in Fort Worth
FORT WORTH, TEXAS — Velocis has sold Magnolia Medical Tower, an 89,991-square-foot medical office building located in Fort Worth, to Ridgeline Magnolia MOB LP. Velocis acquired the property in 2012 and invested $1.5 million in property renovations, including substantial upgrades to all six floors of the building and the parking garage. The property is located adjacent to Baylor All Saints Medical Center at 1603 Mistletoe Blvd. Lee Asher, Chris Bodnar and Austin Barrettin of CBRE represented the seller in the transaction.
Magnolia Medical Tower Under New Ownership
Velocis, a Dallas-based private equity real estate manager, completed its sale of the Magnolia Medical Tower at 1307 8th Ave. in Fort Worth to Ridgeline Magnolia.
Velocis acquired the 88,804-square-foot, sic-story medical office building in 2012. Since the purchase, Velocis has invested $1.5 million into the property, modernizing the building’s elevators, upgrading the common areas and lobbies, and improving energy performance through lighting and mechanical upgrades.
Built in 1985, the complex is located adjacent to Baylor All Saints Medical Center in the West Southwest Fort submarket. At the time of sale, Banks Newton, Jason Manske and Nat Klein of the Lincoln Harris Commercial Services Group were leasing out the remaining vacancies in the building.
CBRE’s Lee Asher and Chris Bodnar of the U.S. capital markets group partnered with Austin Barrett to negotiate the transaction on behalf of Velocis.
For additional information regarding this transaction, please refer to CoStar COMP #3726090.
Magnolia Medical Tower sold
Magnolia Medical Tower has been sold, with Ridgeline Magnolia MOB LP purchasing the Fort Worth property for an undisclosed price.
The 89,991-square-foot tower, at 1307 Eighth Ave. in the medical district, was purchased in 2012 by Dallas-based Velocis. It invested $1.5 million in property renovations, with all six floors and the parking garage undergoing a makeover.
“When we purchased this property, Velocis recognized that it was in need of substantial capital improvements and professional management,” said Jim Yoder, Velocis principal, commenting in a news release
The upgrades helped boost the building from Class C- to B+ status, Yoder added.
Renovations included modernizing the building’s elevators and upgrading common areas, applying new corridor finishes, upgraded lobby areas and reconstructing restrooms, as well as signage, mechanical and lighting updates to improve energy performance.
CBRE’s Lee Asher and Chris Bodnar of the U.S. Healthcare Capital Markets Group partnered with Austin Barrett in the Dallas-Fort Worth market to broker the sale on behalf of Velocis.
Dallas-based Velocis has been active in real estate investment since 2011, purchasing 21 assets located in major markets in Texas, Colorado, Georgia, Florida, Arizona, Virginia and North Carolina. It comprises two entities: Velocis Funds and Velocis Advisors.
Velocis Funds are private equity real estate funds. Velocis Advisors provides asset management and advisory services to both investors and real estate clients. More information is available at velocis.com.
Velocis Acquired Communications Hub in Charlotte for $10M
The two-story building constructed in 1968 was sold to the Dallas-based company for $10 million and is currently 80 percent leased. The building has 26,036 square feet and it offers expansion opportunities. Lincoln Harris is in charge of leasing and managing the center.
“Velocis capitalized on a unique opportunity to secure this property for its important location at the cross roads of Charlotte’s colocation and connectivity network,” mentioned Jim Yoder, Velocis principal. “The asset’s status as a prime fiber optic hub combined with the abundant power and security the building offers tenants, creates a significant untapped opportunity.”
Significant long-haul fiber routes originate from all directions through the building and it draws a wide array of telecommunications and colocation data center users. The property is ideally located close to multiple data centers and telecommunication companies including the area’s main AT&T switch.
Alexander Street Investors LLC, property’s former owner, acquired the building back in 1998 for the amount of $2.9 million.
Dallas property investment fund plans to buy more than $900 million in real estate
The company – which has $400 million in property under management – plans to use the new fund to invest in up to $920 million in properties.
“In the six short years since Velocis was formed, we have raised approximately $415 million, leading to the acquisition of 21 assets across 10 markets,” managing principal Fred Hamm said in a statement. “We are grateful for the support of our investors and look forward to continuing our success as we secure assets, create value and maximize the return for our investors.”
Velocis’ Fund II is buying office, medical office, data center and retail properties priced from $20 to $70 million. They company expects to buy about 20 properties over a 3-year period.
Velocis investors include high-net-worth individuals, large family offices, and institutional investors in the United States, Mexico and Japan.
The company’s real estate is located in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington, D.C. area.
Velocis Closes Second Fund, Raises $270M
Dallas — Velocis has closed its second fund with equity commitments exceeding $270 million, bringing Velocis Fund II assets under management to $400 million.
The current equity commitments provide Fund II with $775 million in purchasing power, incorporating moderate leverage. Management anticipates raising an additional $50 million of co-investment equity from investors, giving Fund II approximately $920 million in purchasing power.
“Clearly, having a successful preceding fund is key. We continue to do quite well in Velocis Fund I,” Fred Hamm, Velocis managing principal, told Commercial Property Executive. “Additionally, we believe we have a very good balance of high net worth, family office and institutional capital. We exert great effort towards all three investor classes. We’re very appreciative of the support we receive from our investors.”
Velocis Fund II is pursuing a value-add investment strategy across 10 markets and four product types: traditional office, medical office, data center and retail properties.
“We will deploy capital in major secondary markets like Phoenix, Denver, Dallas, Atlanta, Charlotte, and the D.C. Corridor, to mention a few,” Hamm said. “Although our acquisition pipeline is always active, we will continue to be very judicious as we invest our capital over the next three years.”
Velocis Fund II has already deployed 27 percent of its capital with two office assets in the Phoenix/Scottsdale market; two office assets in the D.C. Corridor; and one data center in Charlotte, N.C.
According to Hamm, a core principle of Velocis’ investment strategy is proper diversification and it looks at a lot of deals and maintains strict discipline before committing capital.
“Markets and various classes of commercial real estate behave differently along the cycle. Optionality gives us the flexibility to pursue opportunities in multiple markets and multiple product types,” he said. “As a result of this approach, we’re not forced to make something happen in a ‘hot’ market. With years of experience and meaningful relationships across the U.S., we have the ability to source outstanding opportunities that fit our investment strategy.”
Joining Hamm as principals in Fund II are Mike Lewis, David Seifert, Paul Smith and Jim Yoder.
Velocis Closes Second Fund After Raising $270 Million
Velocis, a Dallas-based private equity real estate manager, successfully closed its Velocis Fund II. Equity commitments exceeded $270 million, bringing Fund II assets under management to $400 million.
The current equity commitments provide Fund II with $775 million in purchasing power, incorporating moderate leverage.
Management anticipates raising an additional $50 million of co-investment equity from investors, giving Fund II approximately $920 million in purchasing power.
Fund II has purchased five assets and anticipates securing approximately 20 properties over a three-year investment period. Its most recent purchase was a $39 million buy last month of a three-building office portfolio in Phoenix, Arizona.
Fund II is currently 27% invested and is continuously sourcing new assets for purchase.
“We believe our industry experience, relationships and proven ability to unlock value in select real estate assets were integral to a successful Fund II capital raise,” said Fred Hamm, Velocis managing principal. “In the six short years since Velocis was formed, we have raised approximately $415 million, leading to the acquisition of 21 assets across 10 markets.”
Fund II is pursuing a value-add strategy focused on traditional office, medical office, data center and retail properties in select U.S. growth markets. The fund targets under-managed and distressed assets in the $20 million to $70 million range.
The fund is specifically sized to acquire a diversified portfolio of assets that may be too large for individual investors, but too small for many large institutional investors.
Investors include high-net-worth individuals, large family offices, and institutional investors in the United States, Mexico and Japan.
Velocis has been active in real estate investment since in 2010 making investments in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington DC metropolitan area.
