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
GeoDynamics HQ

Greater Dallas - Fort Worth, TX

Acquired July 2021

Floor & Décor

Houston, TX

Acquired Feb 2021

GeoDynamics Machine Shop
GeoDynamics Machine Shop

Greater Dallas - Fort Worth, TX

Acquired Nov 2021

Loomis Armored US
Loomis Armored US, Inc

El Paso, TX

Acquired Dec 2021

Northern Tool & Equipment

Houston, TX

Acquired Nov 2021

3PL
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:

  • All assets will be secured by single tenant net leases
  • National or strong regional credit supporting all leases
  • Retail assets will generally be considered  “Amazon resistant”
  • Industrial assets have significant tenant capital invested in the property or other economic factors making it difficult to relocate
  • All assets newly constructed or undergone major renovation within past 10 years

Overall Portfolio Criteria:

  • Weighted average portfolio lease term > 10 years
  • Portfolio return meets or exceeds 7.0% after debt service with contractual rent increases
  • Portfolio income sufficient enough to generate greater than 1.5x debt service coverage ratio
  • Conservative leverage not to exceed 65% LTV on a portfolio basis
  • Portfolio offers diversification within product type with no major industry concentration
  • No new investment will be dilutive to the existing Portfolio investors (leveraged return must meet or exceed 7.0%)

INVESTMENT THEMES


Industrial Building Icon
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. 

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SUNBELT STATES

Majority of investment is expected in Texas with the ability to find opportunities in other high growth states across the Southern US.

Open Sign
ESSENTIAL BUSINESS

The Fund will favor properties whose tenants were deemed “essential” and never closed operations during the COVID-19 shut down.

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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.

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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

TX at a Glance 2021

indication of interest


Fund Inquiry
First
Last
Are you an accredited investor as defined by the SEC?* *
*I understand I must qualify as an accredited investor by meeting either of the following: | INCOME : Individually - $200k+ per year | Combined with spouse - $300k+ per year | NET WORTH : $1M not including primary residence |

The Fund can be held directly with us or with one of the below custodians

TD Ameritrade
CHARLES SCHWAB
cnb logo
millennium trust company
rocketdollar
Quest Trust Company
and many others.

 Securities offered through BV Securities, Member FINRA

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