Velocis Sells 3131 McKinney to Invesco Entity
Velocis sold 3131 McKinney to an Invesco entity less than two years after acquiring the 146k SF trophy Uptown Dallas building. Velocis principal and co-founder Mike Lewis (here with his wife) tells us 3131 McKinney fit the Velocis model of buying properties in an office environment with a live/work/play atmosphere. Mike says the property checked every box on their list; they just needed to get in and unlock some of the building’s value. Velocis co-founder Jim Yoder tells us since acquiring the building, it went from a gross+E to a triple-net rent structure. Velocis added a tenant lounge and locker rooms (the Katy Trail is just two blocks away), and food trucks come every other Friday.
Velocis took the building from a Class-A-minus to a solid A, Mike says, and to more than 95% occupancy. He says he usually anticipates holding a property for about five years, but they exceeded expectations within 17 months of acquisition, so it was time to exit the asset. “We have a buy, fix and sell strategy and I’m a firm believer that McKinney Avenue is one of the best addresses for business in the country,” Mike tells us. The first fund (which acquired 3131 McKinney) structure has no reinvestment provision, so the proceeds from this sale will go straight back to the investors, Mike says. Velocis’ second fund was launched on Labor Day with a goal of raising $300M in equity. To date, the fund has raised $65M.