Velocis Fund has closed its debut investment vehicle. According to the Dallas-based real estate investment manager, Velocis Fund I received more than $135 million in equity commitments, bringing the total assets under management to more than $222 million.
Investors in the fund include high-net worth individuals and large family offices in the US, Mexico and Europe. The current equity commitments provide the fund with more than $330 million of buying power, incorporating moderate leverage. The firm expects to raise another $30 million dollars of co-investment equity from investors, giving the fund approximately $425 million in purchasing power.
Fred Hamm, Velocis managing principal, said in a statement: “While we are no longer accepting direct equity commitments into the fund, there still is an opportunity for investors to take advantage of future investment opportunities through co-investments.”
The fund targets US real estate assets in the $10 million to $50 million range in demand-driven and supply-constrained markets, focusing on core-plus office, medical office and retail properties. The vehicle is specifically sized to acquire a diversified portfolio of assets that may be too large for individual investors, but too small for many large institutions. The fund is targeting net returns of 16 percent to 18 percent.
Launched in 2010, the fund held its first close on $36.5 million in July 2011. The fund held five additional interim closings between its first and final close, and there was additional equity raised through co-investment opportunities.
The fund currently is 40 percent invested, owning seven assets in Texas and one in Colorado. The most recent acquisitions on behalf of the vehicle were two shopping centers in Austin: West Woods Shopping Center and Springdale Shopping Center. Together the centers have more than 350,000 square feet of retail space.
Founded in 2010, Velocis is led by co-founders and principals Hamm, Mike Lewis, Steve Lipscomb and Jim Yoder. In addition to its core-plus fund, Velocis offers advisory services to both investors and real estate clients.