DALLAS – In back-to-back off-market transactions, BV Capital and its investors have funded Bridgeview Multifamily's acquisition of development sites in Dallas/Fort Worth and the Texas Hill Country to build two class A multifamily projects totaling nearly 800 units.
Bridgeview expects to break ground this year on both sites. More than 400 units will be developed on 7.8 acres in Mansfield, one of DFW's high-growth suburbs, and 380 apartments are planned for a 17.06-acre tract in New Braunfels.
"Both development sites are irreplaceable locations within close distance of their respective city's top attractions," says Rob Anderson, president of Dallas-based BV Capital, a member of the Bridgeview family of companies.
The Mansfield site is close to the Shops at Broad, Dr. Pepper Stars Hockey Center and Fieldhouse USA. The New Braunfels acreage is less than a mile from Gruene Hall, the most famous and oldest honky-tonk in Texas.
"These were development opportunities that required a quick close that we just couldn't pass up," Anderson says, "even though it meant deploying a new investment strategy for us."
To facilitate a quick close, BV Capital's team completed one capital raise to fund site acquisition and pre-development. A second capital raise is being used for construction.
"This is the first time we've broken investments into two phases. This structure allows investors in the pre-development phase to have the option of receiving their return or roll it into the development phase," Anderson says. "Thus far, it's been well received."
BV Capital's sister company and development arm, Bridgeview Multifamily, is planning a four-story project in Mansfield – a mix of one- and two-bedroom apartments with a targeted average of 850 sf. Construction is anticipated to get underway in the fall.
"Mansfield has grown exponentially in the past five years. It is clearly time to develop this site," says Steve May, principal of Bridgeview Multifamily.
Mansfield, like other suburban cities in the region, has built residential, retail and recreational amenities in tandem to grow its economic base. The population has climbed to nearly 90,000, up 2.75% per year since 2015. Within the city limits, there are 11 parks, 3.5 miles of hiking and biking trails, 80 acres of nature parks, four athletic fields and two golf courses. As for Bridgeview's development site, it will neighbor 430,000 sf of retail and restaurants with more on the way, including a mega H-E-B that's slated to open this year.
Bridgeview acquired the New Braunfels site from a private seller via direct negotiations. The developer is planning a complex of three-story buildings, also a one- and two-bedroom mix averaging 850 sf. A late 2022 groundbreaking is projected.
New Braunfels is the third fastest-growing city in the nation for populations with more than 50,000 residents. It's one of the most popular Texas Hill Country destinations, a haven for outdoor enthusiasts and festival-goers. It's also home to Schlitterbahn Waterpark & Resort, which Amusement Today has ranked as the world's best for 23 consecutive years.
Bridgeview's land is located near the Gruene Historic District, which attracts more than one million visitors per year. In addition, the site is bordered by a proposed single-family community and one of the city's largest employers, Coleman Co. Inc.
"New Braunfels is a boomtown right now," Anderson says, "and our site is located at the heart of the new growth corridor."
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.