Velocis Adds 350 KSF of Texas Retail to Year-Old Portfolio
By Barbra Murray, Contributing Editor
Since completing its first closing one year ago, real estate investment fund Velocis has been quickly building up its portfolio and the buying binge continued with the recent acquisition of two retail centers in Austin, Texas. The fund bought West Woods Shopping Center and Springdale Shopping Center, properties encompassing a total of approximately 350,000 square feet of space, for approximately $60 million.
“Austin is the second fastest growing city in the United States, which directly impacts the retail market,” Steve Lipscomb, Velocis principal and co-founder, told Commercial Property Executive. “With the purchase of Springdale and West Woods shopping centers, Velocis is seeking to capitalize on this growth market by investing in two stable retail centers.”
Described by Velocis as one of Austin’s most prominent retail destinations, the 189,300-square-foot West Woods sits at a bustling intersection in an upscale area of the city. Springdale, featuring roughly 163,700 square feet near the Mueller Airport Redevelopment, is also located near a well-traveled juncture.
With the acquisition of the two Austin shopping centers, Velocis has created a nine-property portfolio, but it’s not all about retail for the fund. Velocis also owns office assets, as well as properties in the increasingly popular medical office sector. Location, however, is a key criterion for acquisition as the fund hunts for properties that may be too large for individual investors and too small for institutional buyers. Simply put, Lipscomb explained, “Velocis targets assets in demand driven/supply constrained markets in the U.S.”
Velocis is well positioned to continue snapping up just the right assets in the right locations. The fund completed its second closing in June, taking it one step closer to its goal of raising $150 million in equity for leveraged buying power totaling $350 million.