A triple net lease (triple-net or NNN) is a lease agreement on a property commonly found in commercial real estate. With a triple-net lease, the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance in addition to the cost of rent and utilities. Triple net leased properties have become popular investment vehicles for investors because they provide low-risk, steady income.
BV ARCHWAY
REAL ESTATE INCOME FUND
FUND OVERVIEW
The Fund is a diversified portfolio of triple net leased (NNN) assets with a focus on Texas and Sunbelt States that have demonstrated resilience during the current economic environment. The primary goal is to provide stable current income in a conservative investment while still providing the opportunity for future upside upon the exit of the investment.
The Fund invests in occupied NNN long term leased properties and is designed to last 4-5 years effectively creating stable income for investors over that time frame with good upside at the end. At that time we will sell all the assets and return investor capital plus the profits from the sale. The estimated target portfolio multiple range is 1.6x to 2.0x.
GeoDynamics HQ
Greater Dallas - Fort Worth, TX
Acquired July 2021
Floor & Décor
Houston, TX
Acquired Feb 2021
GeoDynamics Machine Shop
Greater Dallas - Fort Worth, TX
Acquired Nov 2021
Loomis Armored US, Inc
El Paso, TX
Acquired Dec 2021
Northern Tool & Equipment
Houston, TX
Acquired Nov 2021
3PL
Houston, TX
Acquired Dec 2021
Why Consider This?
- 7% annual distribution paid monthly*
- 20 million raised to date, distribution payments began February 2021
- Monthly income for 4-5 years with upside at the end
- Estimated target portfolio multiple range is 1.6x to 2.0x (Multiple is net of all fees and commissions)**
- Tax benefits -- annual K-1s + distributions coded as "return of capital", so you don't pay any taxes until portfolio is sold
- Diversification from ground up / value add real estate projects
- Strong Texas economy combined with a new focus on US manufacturing / Industrial space, in line with reconfiguration of global supply chains and e-commerce
- $100k Minimum Investment
* The preferred return is not guaranteed as it relies on the performance of the Fund and the underlying assets. The estimated multiple is net of all fees and commissions.
** See Distributions and Allocations section on Page 47 of the PPM for more detail.
BV Capital has a longstanding relationship with Archway Properties. Archway is one of the top developers and managers of Industrial properties across Texas. The first six (6) properties have been acquired with a seventh property under contract, with BV investors receiving monthly distributions since Feb 2021. The Fund is backed by a diversified portfolio of strong credit, single tenant, NNN leases (most leases at least 10yrs vs. est. fund duration of 5yrs).
Investment Criteria
Investment asset Criteria:
Overall Portfolio Criteria:
INVESTMENT THEMES
INDUSTRIAL
The Fund will favor Industrial properties and intends to create a portfolio of high-quality income generating Industrial assets in great locations with strong fundamentals.
SUNBELT STATES
Majority of investment is expected in Texas with the ability to find opportunities in other high growth states across the Southern US.
ESSENTIAL BUSINESS
The Fund will favor properties whose tenants were deemed “essential” and never closed operations during the COVID-19 shut down.
MISSION CRITICAL FACILITIES
The Fund seeks properties that demonstrate a “mission critical” nature to the tenant’s business. These companies have typically made significant investment in the facilities which makes relocation less likely.
BUILD TO SUITS
Archway's core competency. We expect business to continue to relocate facilities to Texas and other Sunbelt States due to favorable business climate, central location and affordable cost of living.
TEXAS HIGHLIGHTS
#1 FOR GDP GROWTH
U.S. Bureau of Economic Analysis
#1 JOB CREATOR
U.S. Bureau of Labor Statistics 2020
#1 DESTINATION FOR COMPANY RELOCATIONS
Dallas FED 2019
#1 GROWING POPULATION
U.S. Census Bureau 2020
TEXAS QUICK FACTS
1
At $1.9 trillion, Texas has the 9th largest GDP as we’ve now passed up Brazil
2
Texas ranked #1 Best State for Business for 16 Consecutive Years by Chief Executive Magazine – June 11, 2020
3
Texas ranked as the #1 State for Business Climate by Business Facilities – July 29, 2020
4
Texas is the largest manufacturing state in the U.S. accounting for 10% of total manufacturing, topping $243 billion in 2019
5
Texas produces almost 40% of America’s oil and 24% of the country’s natural gas
6
Texas is also the top exporting state with almost 20% of total U.S. exports totaling $247 billion
7
With the largest transportation network in the U.S., Texas has over 313,000 miles of public highways, 16 seaports, and 380 airports
8
Texas is also home to almost 1 million women-owned businesses, with a nearly 150% growth rate over the past 20 years, and the state ranks third in the U.S. for total female-owned businesses
The Fund can be held directly with us or with one of the below custodians
and many others.
Securities offered through BV Securities, Member FINRA
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BV Capital, LLC is a wholly owned subsidiary of
The information contained herein does not constitute an offer to sell nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in the firm’s limited partnerships involve a high degree of risk, including the possible loss of your investment, and they are potentially illiquid with an uncertain liquidity date. Prospective investors should carefully review the “Risk Factors” section of any private placement memorandum.
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