GobeSt.com: How will the second fund differ from the first?

Hamm: Fund II will be similar to Fund I, but with a larger targeted equity raise of $300 million, allowing the GP to pursue larger asset purchases, possibly including portfolios. Velocis has added Phoenix and San Jose, California to their target markets. The Velocis team will continue to utilize the same industry experience, relationships and proven ability to unlock value in assets.

GlobeSt.com: What type of properties are you targeting?

Hamm: Fund II will pursue office, medical office and retail properties in select US growth markets.

GlobeSt.com: Why the emphasis on office, medical office and retail?

Hamm: (Office) In most markets across the U.S., there has been very little new supply added in infill locations. As the country recovers from the economic recession, job growth in select markets is translating into increased demand for space – and is leading to strong rental increases in our target markets.

(Medical Office) Many hospital systems in growth markets are working to expand their footprint and services. MOB's located near strong, expanding hospital systems are seeing strong occupancies and rent pressure. We are targeting MOBs near campuses with tenants that have near-term lease expirations. This allows us to improve the revenue stream and add value for our investors.

(Retail) Similar to office, very little speculative retail space has been added since the recession. In growth markets, consumer spending has been strong in the retail sector. Additionally there is strong investor demand for stabilized retail product. Our strategy is to identify under-utilized properties, reposition the assets and sell to a core buyer (like a REIT).

GlobeSt.com: Which markets are really holding your interest at this point?

Hamm: We focus on markets with strong job growth, pro-business environments, and favorable accessibility - specifically we are looking at: major markets in Texas, Denver, Colorado, Southern Florida, Washington D.C., Raleigh and Charlotte, NC, Phoenix, and San Jose, California.

GlobeSt.com: Can you share one example of a property acquired through the first fund that you were able to turn around?

Hamm: Our first asset sale was The Jefferson, a medical office building in Austin, Texas. That asset exceeded our expectations, providing investors with a 30.4 percent net IRR and 2.02x equity multiple, net of all fees and expenses. We were able to push occupancy and rental rates faster than we underwrote. The Velocis team's active management of this property resulted in superior performance for our investors.