DALLAS – BV Archway Real Estate Income Fund has acquired a quartet of single-tenant assets, all triple net-leased, in Texas in a fast-paced round of closings valued at more than $40 million.

These acquisitions have expanded BV Archway's triple net-lease portfolio by 263,323 sf of class A and class B industrial and retail space in Houston, El Paso and Millsap situated 30 minutes west of Fort Worth. The average weighted lease term is 10 years for the fund's new holdings.

The newly acquired, fully leased properties are:

• 650 Gellhorn Dr. in Houston – a five-building industrial complex, totaling 161,626 sf on nearly nine acres. The property is rail-served and five miles from the Port of Houston. It is leased to a third-party logistics firm;
• 5869 Waycross Ave. in El Paso – a heavily secured two-building project, totaling 22,300 sf on 1.78 acres;
• Northern Tool + Equipment, 18780 US 59 in Houston – a 22,016-sf retail project on 1.7 acres in Park Air 59, a class A mixed-used business park at the gateway of Bush Intercontinental Airport;
• GEODynamics Inc.'s manufacturing facility, 10400 W. Interstate 20 in Millsap – a 57,381-sf structure on a 10.37-acre tract that is adjacent to the company's 15,866-sf headquarters building, which the fund acquired last summer. The firm, which is a wholly owned subsidiary of Oil States International, specializes in research, development and manufacturing of  consumable engineered products for the oil and gas exploration industry.

The fund acquired the 3PL project from Delaware ABP TX Hou LLC of Marietta, GA. The other three properties were secured through direct deals with fund partner Archway Properties, a Houston-based development firm that previously acquired or developed each of the assets.

"Our fund has been popular within the Registered Investment Advisors' space, which appreciates the 7% preferred return*, which has been paid consistently since breaking escrow in February 2021," says Rob Anderson, president of Dallas-based BV Capital, a member of the Bridgeview family of companies.

BV Archway Real Estate Income Fund is a partnership between BV Capital and Archway Properties. The investment vehicle was launched eight months ago with the ability to raise $50 million in equity to acquire net-leased industrial, retail and office assets in Texas and Sunbelt states. To date, the fund has raised more than $20 million in equity, which was used to acquire the properties.

There presently are six properties in the fund's mixed-use portfolio, with another set to roll in Q1. The common denominator is the caliber of the creditworthy tenants, a diversified mix of institutional quality and strong regional brands with long-term leases in place.

*The preferred return is not guaranteed as it relies on the performance of the Fund and the underlying assets. Securities offered through BV Securities.

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.

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.

BV created this fund to produces cash flow for accredited investors with tax benefits minus the turbulence of today's markets.