Velocis, a private equity real estate manager, has purchased 701 Trade Street, a telecom carrier hotel and data center in downtown Charlotte. This is Velocis’ second asset purchased in North Carolina.
“Velocis capitalized on a unique opportunity to secure this property for its important location at the cross roads of Charlotte’s colocation and connectivity network,” said Jim Yoder, Velocis Principal. “The asset’s status as a prime fiber optic hub combined with the abundant power and security the building offers tenants, creates a significant untapped opportunity.”
The two-story building, which offers expansion opportunities, was built in 1968 and is currently more than 80 percent leased. Significant long-haul fiber routes originate from all directions through the building and it draws a wide array of telecommunications and colocation data center users. Additionally, it is ideally located close to multiple data centers and telecommunication companies including the area’s main AT&T switch.
Velocis partnered with Lincoln Property Company on the acquisition. “Charlotte offers a dense telecommunication infrastructure that is on par with any Tier 1 city,” said Martin Peck of Lincoln’s data center division, Lincoln Rackhouse. The facility will be leased and managed by Lincoln Harris.
Dallas-based Velocis, has been active in real estate investment since 2011, purchasing 18 assets located in markets in Texas, Colorado, Georgia, Florida, North Carolina and Arizona. Launched in 2010, the Fund is led by principals Fred Hamm, Mike Lewis, Paul Smith, Jim Yoder, and David Seifert.