Rendering of future development, Mercantile Lofts

funded: ground-up development offering

BVCAP Mercantile Investors - Arlington

project overview

BV Capital presented an opportunity to invest in the ground-up development of a 248-unit “Class A” multifamily hybrid wrap/garden-style residential community named Mercantile Lofts in Arlington, TX.

We believe the investment opportunity provides a strong value proposition for investors looking to capitalize on the growing demand for rental units in the North Texas area. The current period has presented challenges in the real estate sector, particularly for ground-up multifamily construction with access to development capital being restricted as major banks curtail real estate lending.

The project is located within the Dallas-Fort Worth Metroplex in Arlington Highlands, a rapidly growing corridor strategically located near Interstate 20, giving residents convenient access to both cities’ major employment and entertainment drivers. This proximity to major employers is driving continuous growth in the Arlington area and positions it as a prominent destination for new developments.

development rendering video

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Rendering video of future development, Mercantile Lofts

$14,000,000

equity raise

$100,000

minimum investment

1.7x - 2.0x*

ESTIMATED INVESTOR multiple

8-10%*

PREFERRED RETURN

36-42 Mo.

EST. HOLD PERIOD

* Due to various risks and uncertainties, actual returns may differ materially from the returns reflected. No return is guaranteed and investors risk the loss of the entire amount of their invested capital. Preferred Return is dependent on share class owned.

PROJECT Location:

126,758 - Employees in a 5-mile radius

12,208 - Businesses in a 5-mile radius

$76,108 - Average household income in a 3-mile radius

94.7% - 5-year Average Occupancy Rate

6.2% - 5-year Average Rent Growth (MPF Q4 2023)

key advantages

1. unprecedented zoning benefits

Additionally, the Project benefits from unprecedented zoning approvals for Arlington, where most garden-style properties are limited to 18-22 units per acre. Bridgeview has secured approval for 39 units per acre, significantly increasing the site’s density. This increase allowed the development to expand from 148 units to 248 units, further enhancing its financial and operational potential. Bridgeview received an additional zoning benefit in a reduction of the setback requirement from 45 feet to 25 feet which combined with the inclusion of a parking deck, has optimized land use, accommodating the added density while maintaining high-quality design standards.

2. Land Cost Well Below Market Average

Mercantile Lofts' strategic land acquisition presents a key competitive advantage by securing land well below market averages. At $19.62 per square foot, BV estimates this land cost to be 12.7% lower than the Dallas-Fort Worth (DFW) market average of $22.47 per square foot [1]. By securing the land at such favorable terms, Mercantile Lofts achieves a total cost savings of approximately $784,603 which strengthens the project's financial metrics and improves its value proposition.

[1] Market Price of $22.47 per square foot is based on Bridgeview’s recent market study completed in February 2024 – Completed by Valbridge Property Advisors

mercantile lofts - arlington, tx

Project image gallery

Mercantile Lofts will include market-leading amenities such as a resort-style pool, clubhouse, fitness center, EV charging stations, secured parking garage, rooftop deck, and outdoor grill/bar. The site plan calls for the property to have an average unit size of 803 square feet and a unit mix of 21% efficiency-bedroom units, 60% one-bedroom units, and 19% two-bedroom units. This unit mix is in line with other comparable properties in the area and the demands of the anticipated tenant base.

All images displayed are renderings of the future development.

An “accredited investor” is a category of person permitted to participate in certain unregistered securities offerings. A simple way to think of the line-drawing exercise the SEC is engaged in here is that the more capable an investor is of fending for him/herself in an offering, and the more able an investor of withstanding a complete loss on the investment, the less the SEC is concerned about mandating the obligations of a public reporting company on an issuer.

For natural persons, an “accredited investor” is anyone who has either: (1) earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, or (2) a net worth of over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). There are other exemptions based on financial sophistication, but these thresholds are the most generic in terms of determining accreditation status.

For entities, there are a number of tests to determine whether the entity in question is accredited. For the most part, if the entity has over $5 million in total assets or all of the owners of the entity are accredited, then the entity will be deemed to be accredited.

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funded: ground-up development offering

BVCAP Mercantile Investors - Arlington

project overview

development rendering video

$14,000,000