Private equity real estate manager Velocis has raised over $270 million for its second fund. Velocis Fund II is focused on traditional office, medical office, data center and retail assets in certain U.S. growth markets. The pool’s limited partners include high-net-worth individuals, large family offices and institutional investors in the U.S., Mexico and Japan.
DALLAS – Velocis, a private equity real estate manager, today announced the successful closing of Velocis Fund II. Equity commitments exceeded $270 million, bringing Fund II assets under management to $400 million.
“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. 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.”
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 is currently 27 percent invested and is continuously sourcing new assets for purchase.
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 to $70 million range. Fund II has purchased five assets and anticipates securing approximately 20 properties over a three-year investment period.
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 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, David Seifert, Paul Smith and Jim Yoder.
Velocis has been active in real estate investment since launching Velocis Fund I in 2010. Since then, Velocis has raised approximately $415 million of equity commitments and purchased 21 assets located in Arizona, Colorado, Texas, Georgia, Florida, North Carolina, and the Washington, D.C. metropolitan area.
Velocis consists of two entities: Velocis Funds and Velocis Advisors. Velocis Funds are private equity real estate funds, active in the acquisition, operation/management, and disposition of commercial real estate in the United States. Additionally, Velocis Advisors provides asset management and advisory services to both investors and real estate clients. Additional information about Velocis can be found at velocis.com.