BV Capital, Archway Rolling Out $50M Net-Leased Fund, Seeds Portfolio with Off-Market Acquisition
DALLAS – BV Capital and Archway Properties have launched the BV Archway Real Estate Income Fund, jump-starting a $50 million equity play with the off-market acquisition of a triple net-leased asset in a 111-acre business park in the Houston market.
The fund is planning to acquire 10 to 12 single-tenant NNN-leased properties in Texas, leveraging its equity to build an institutional-quality portfolio of commercial assets. BV Capital projects it will be fully invested in one to two years.
The fund has seeded the portfolio with its first holding – a 79,684 sf Floor & Décor showroom and warehouse in Park Air 59, a mixed-use development located at the eastern entrance of Bush Intercontinental Airport. The Archway-developed project, which delivered in late 2019, is secured by a NNN lease with a publicly traded company that's ranked as one of Fortune 100's fastest growing companies.
"Floor & Décor is pandemic-resistant, as evidenced by its stellar growth in the past year. It's a strong start for the BV Capital Archway Fund portfolio," says Rob Anderson, president of Dallas-based BV Capital, a member of the Bridgeview family of companies. "Archway Properties truly is a great partner for sourcing and acquiring properties."
The fund's strategy calls for an anticipated five-year hold. The team is focused on sourcing build-to-suit developments and one-off acquisitions of newer buildings, which are NNN-leased for the long term to creditworthy tenants in historically strong markets like Dallas/Fort Worth and Houston.
"The fund has four more properties under contract," Anderson says. "Our acquisition sweet spot is $5 million to $15 million."
BV Capital is projecting a 7% annual preferred return for the new investment vehicle, which is coming to market as a real estate alternative for accredited income investors. The fund is designed to produce a stable monthly income for investors throughout the hold, with an opportunity for upside on the exit.
"The beauty is we've created a fund that produces cash flow for accredited investors with tax benefits minus the turbulence of today's markets," Anderson says.
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.