Velocis Enters Industrial Market
The company will start its portfolio with two Dallas-area sites acquired in partnership with Sumitomo Corp. of Americas.
Velocis will introduce industrial properties to its portfolio following the acquisition of two development sites in the Dallas area.
Since 2010, the company has purchased 35 properties in major U.S. markets, primarily focusing on multifamily, office, medical office and life science assets in high-growth Sun Belt markets. Velocis’ portfolio has grown to include offices in the Washington, D.C., metro; retail in Austin, Texas; and multifamily in Charlotte, N.C.
Last year, Velocis acquired a 10-story office building in the Rosslyn, Va., submarket just outside of Washington, D.C., for $71.4 million.
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Velocis decided to enter the U.S. industrial market due to the sector’s ongoing high demand for space. Paul Smith, partner at Velocis, said in prepared remarks that the demand for industrial real estate, especially in Texas metro markets, is at an all-time high right now. Smith also noted that Velocis will look at opportunities both locally and nationally.
Closing on first two projects
To kick off its entry into the industrial sector, Velocis has partnered with Sumitomo Corp. of Americas to close on two development sites in the South Dallas and the Great Southwest submarkets in Texas. The two properties will be developed into 850,000 square feet of Class A industrial space.
“Each site is supported by excellent infrastructure, zoning that allows immediate construction for industrial use and local jurisdictions that favor this type of development,” Smith told Commercial Property Executive. “Additionally, both sites allow for immediate access to major population nodes (in Dallas-Fort Worth).”
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Smith told CPE that the Great Southwest market has seen a robust uptick in leasing activity over the past years and has very little vacancy for industrial product. The two development sites will also be the first of several investments the company has planned with Sumitomo.
Velocis is currently reviewing multiple opportunities in Dallas and Fort Worth, alongside an attractive opportunity in the north Austin market.