DALLAS – BV Archway Real Estate Income Fund has acquired a quartet of single-tenant assets, all triple net-leased, in Texas in a fast-paced round of closings valued at more than $40 million.
These acquisitions have expanded BV Archway's triple net-lease portfolio by 263,323 sf of class A and class B industrial and retail space in Houston, El Paso and Millsap situated 30 minutes west of Fort Worth. The average weighted lease term is 10 years for the fund's new holdings.
The newly acquired, fully leased properties are:
- 650 Gellhorn Dr. in Houston – a five-building industrial complex, totaling 161,626 sf on nearly nine acres. The property is rail-served and five miles from the Port of Houston. It is leased to a third-party logistics firm;
- 5869 Waycross Ave. in El Paso – a heavily secured two-building project, totaling 22,300 sf on 1.78 acres;
- Northern Tool + Equipment, 18780 US 59 in Houston – a 22,016-sf retail project on 1.7 acres in Park Air 59, a class A mixed-used business park at the gateway of Bush Intercontinental Airport;
- GEODynamics Inc.'s manufacturing facility, 10400 W. Interstate 20 in Millsap – a 57,381-sf structure on a 10.37-acre tract that is adjacent to the company's 15,866-sf headquarters building, which the fund acquired last summer. The firm, which is a wholly owned subsidiary of Oil States International, specializes in research, development and manufacturing of consumable engineered products for the oil and gas exploration industry.
Loomis Armored US, Inc
El Paso, TX
Acquired Dec 2021
GeoDynamics Machine Shop
Greater Dallas - Fort Worth, TX
Acquired Nov 2021
Northern Tool & Equipment
Acquired Nov 2021
Acquired Dec 2021
The fund acquired the 3PL project from Delaware ABP TX Hou LLC of Marietta, GA. The other three properties were secured through direct deals with fund partner Archway Properties, a Houston-based development firm that previously acquired or developed each of the assets.
"Our fund has been popular within the Registered Investment Advisors' space, which appreciates the 7% preferred return*, which has been paid consistently since breaking escrow in February 2021," says Rob Anderson, president of Dallas-based BV Capital, a member of the Bridgeview family of companies.
BV Archway Real Estate Income Fund is a partnership between BV Capital and Archway Properties. The investment vehicle was launched eight months ago with the ability to raise $50 million in equity to acquire net-leased industrial, retail and office assets in Texas and Sunbelt states. To date, the fund has raised more than $20 million in equity, which was used to acquire the properties.
There presently are six properties in the fund's mixed-use portfolio, with another set to roll in Q1. The common denominator is the caliber of the creditworthy tenants, a diversified mix of institutional quality and strong regional brands with long-term leases in place.
"Our goal is to acquire 10 to 12 assets for an anticipated hold of five years," Anderson says. "At this pace, we could be fully invested by the end of 2022."
*The preferred return is not guaranteed as it relies on the performance of the Fund and the underlying assets. Securities offered through BV Securities.
About BV Capital
BV Capital is a member of Bridgeview family of companies based in Dallas. Founded in 2011, Bridgeview is a private veteran-owned real estate development and investment company. BV Capital offers direct investments historically only available to institutions to real estate developers and sponsors of major commercial real estate assets.
About Archway Properties
With offices in Houston and Dallas, Archway Properties offers a broad range of real estate services to its clients and partners including acquisition, development, project management and asset management. Our principals have successfully completed projects with a total value in excess of $2 billion.
The Fund now owns 7 assets with the acquisition of an industrial facility in Arlington, TX in August 2022, with Grainger as the anchor tenant. The Fund is still open to new investment but is in the final acquisition stage and will be closing to new money later this year.