Ballantyne-area apartments trade to Texas real estate firm Velocis for $53M

More suburban apartments have sold in Charlotte, this time to an investor that recently entered the apartments acquisition space.

Dallas, Texas-based Velocis, a private equity real estate manager, has acquired the Beverley apartment property in the Ballantyne area, at 11926 N. Community House Road. Velocis paid $53 million for the 201-unit property, or a little more than $260,000 per unit.

This is the first apartment acquisition for Velocis, the company said. Much of its portfolio includes office buildings, although it also owns retail and mixed-use properties. In Charlotte, it also owns a data center in uptown.

As a few commercial asset classes have become more uncertain through the Covid-19 pandemic, some investors have begun buying, for the first time, apartment properties, as JLL and others have noted. Charlotte has seen a buying spree of apartments in the second half of 2020, especially in the suburbs. The sector has been widely viewed as more stable and resilient through the pandemic.

Beverley, which was developed by Charlotte-based Proffitt Dixon Partners, finished construction this year. The property was 71% leased at the time of sale. Beverley includes amenities like coworking spaces, a rooftop deck, saltwater pool, dog park, spa, fitness center and upscale interior finishes.

Jim Yoder, partner at Velocis, said in a statement the firm sees immense opportunity in the U.S. multifamily market but remains incredibly prudent in how it deploys capital.

“In fact, we looked at nearly 100 multifamily assets before finding the right fit with Beverley,” Yoder said. “As a new, high quality, top-of-market asset in the late lease-up stage, the fundamentals we found in Beverley will allow us to continue the property’s leasing momentum toward stabilization without renovation costs and the associated risk.”

JLL marketed the Beverley property.

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Velocis Makes First Multifamily Acquisition: 201-Unit Apartment Property in Charlotte

CHARLOTTE, NC – (Dec. 28, 2020) – Velocis, a private equity real estate manager, has made its first multifamily acquisition with the purchase of Beverley, a 201-unit mid-rise apartment community in Charlotte. Beverley was built in 2020 by Charlotte-based developer, Proffitt Dixon Partners and was lightly marketed to a select group of investors by JLL.

Responding to pandemic-driven changes in the US real estate market, Velocis has broadened its investment optionality by adding multifamily assets to its investment product offerings. As its first multifamily acquisition, Beverley represents an opportunity for the real estate manager to stay true to its value-add strategy while expanding into a new asset class.

“We see immense opportunity in the multifamily market across the country, but we’re still incredibly prudent in how we deploy capital. In fact, we looked at nearly 100 multifamily assets before finding the right fit with Beverley,” said Jim Yoder, Velocis partner. “As a new, high quality, top-of-market, asset in the late ‘lease up’ stage, the fundamentals we found in Beverley will allow us to continue the property’s leasing momentum toward stabilization without renovation costs and the associated risk.”

Beverley is located in Charlotte’s prime Ballantyne submarket, which has experienced tremendous recent growth with the relocation of major corporate employers to the area, along with Class A retail and the 2,000-acre Ballantyne master-planned community.

Beverley features top-of-market unit features and community amenities, including coworking spaces, a rooftop deck, a resort-style saltwater pool, dog park, spa, fitness center and luxury interior finishes. The property is currently 71% leased.

Dallas-based Velocis has been active in real estate since 2010, purchasing 33 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Velocis partners include Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.

About Velocis

Velocis is a private equity real estate investment firm, active in the acquisition, operation/management and disposition of commercial real estate in the United States. Additional information about Velocis can be found at velocis.com.  

This does not constitute an offer to sell, or a solicitation of any offer to buy any securities or investment advice, nor is it intended to be a description of all material factors an investor should consider before making any investment. 

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