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 current income in a real estate investment that meets the investment objective of a growth and income investor.
The Fund invests in occupied NNN long term leased properties and is designed to last 3-4 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.
GeoDynamics HQ
Greater Dallas - Fort Worth, TX
Acquired July 2021
Floor & Décor
Houston, TX
Acquired Feb 2021
Northern Tool & Equipment
Houston, TX
Acquired Nov 2021
GeoDynamics Machine Shop
Greater Dallas - Fort Worth, TX
Acquired Nov 2021
Loomis Armored US, Inc
El Paso, TX
Acquired Dec 2021
3PL
Houston, TX
Acquired Dec 2021
Grainger
Arlington, TX
Acquired Aug 2022
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.
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.
Why Consider This?
- 7% annual distribution paid monthly*
- $26 million raised to date, distribution payments began February 2021
- Monthly income for 3-4 years with upside at the end**
- Tax benefits -- annual K-1s + distributions coded as "return of capital for tax purposes only", so taxes are partially offset by coding the income this way.
- 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
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 7 properties have been acquired, 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 10 yrs vs. estimated fund duration of 5 yrs since breaking escrow in Feb 2021).
*Class A unit holders will receive distributable cash in proportion to their ownership of Class A units until they have received a cumulative, but not compounding, amount equal to 7.0% annual preferred return calculated monthly on each Class A unit holder's respective unreturned capital contributions for the applicable accrual period. The preferred return is not guaranteed as it relies on the performance of the Fund and the underlying asset.
**An investor should be able to withstand the fact that the return of their original capital contribution may be delayed. The Manager reserves the right to extend the five-year holding period for up to two additional years at the Manager’s discretion.
Investment Criteria
Investment asset Criteria:
Overall Portfolio Criteria:
Investment Criteria
Investment asset Criteria:
Overall Portfolio Criteria:
The Fund can be held directly with us or with one of the below custodians and many others.
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*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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