Velocis Closes Second Fund After Raising $270 MillionJuly 20, 2016
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.