A Dallas-based private equity real estate fund has acquired its first assets in the Triangle, paying just over $4.9 million for two medical office buildings on Sunset Ridge Road in West Raleigh.
Velocis has been actively looking to buy assets here for about a year, said Jim Yoder, a principal with the firm. The fund expects to make some minor improvements to the buildings and sell them within three to five years.
“We are typically not a long-term holder of real estate,” Yoder said. “We like to buy it, fix it and sell it. That’s kind of our mantra.”
The two Raleigh buildings include about 38,000 square feet of space, 82 percent of which is leased. Yoder said the fund was attracted by the proximity of the buildings to Rex Hospital, as well as the 6 percent to 8 percent vacancy rate for medical space in the area.
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Velocis’ strategy for its medical office assets is to pool them into a portfolio that it can then sell.
Yoder said the fund, which has made 14 acquisitions since its founding four years ago, is actively looking to acquire more assets here.
“We’ve actually got a couple other offers out on properties in the Triangle,” Yoder said.
Staff writer David Bracken