Velocis Fund II Raises $120 Million in CapitalSeptember 30, 2015
DALLAS – (Sept. 30, 2015) – Velocis Fund II, L.P., a private equity real estate fund, today announced it has a total of approximately $120 million in capital commitments (including co-investment capital). Most recently, Fire and Police Pension Association of Colorado (FPPA) committed $20 million in capital. Fund II is continuing to accept capital commitments until it reaches its targeted capital raise of $300 million.
“After carefully tracking our Fund I performance, FPPA made a meaningful commitment to Velocis Fund II. This type of actively-managed, value-add fund appeals to FPPA, as does our ability to deploy capital and unlock hidden value in assets across multiple markets and multiple product types,” said Fred Hamm, Velocis managing principal. “We are quite pleased with our current fundraising velocity, and going forward, will continue to hold rolling closes in anticipation of reaching our fund target sometime in the second quarter of 2016. Our acquisition pipeline is steady, but we’ll be very careful getting our capital out. ”
When incorporating moderate leverage of 65 percent, $300 million of equity will give Velocis Fund II approximately $850 million in purchasing power. Fund II currently has total assets under management of more than $182 million. This includes a traditional office building in Scottsdale, Arizona; a two-asset office building in Sterling, Virginia; and a specialty data center/carrier hotel in Charlotte, North Carolina. Velocis has three years to deploy capital.
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 financially-distressed or under-managed U.S. real estate assets in the $20 to $70 million range. The Fund has purchased three assets and anticipates securing 20 to 25 properties over a three-year investment period.
Velocis Fund II is led by a team of five seasoned principals who are directly responsible for the acquisition, asset management and disposition of assets. Joining Fred Hamm as principals in Fund II are Mike Lewis, Jim Yoder, Paul Smith and David Seifert.
Velocis has been active in real estate investment since 2011, purchasing 19 assets located in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington, D.C. metropolitan area.
Velocis Fund I and Velocis Fund II are active in the acquisition, operation/management, and disposition of commercial real estate in the United States. Velocis Advisors, LLC provides asset management and advisory services to both investors and real estate clients through separate accounts. Additional information about Velocis can be found at https://www.velocis.com/.