BV Capital Announces Plans to Build Two Texas Apartment Projects
BV Capital, a member of the Bridgeview family of companies, announced that they have funded the acquisition and development of nearly 30 acres of land for their affiliate, Bridgeview Multifamily LLC, to build two class A apartment projects in Texas.
The company says the apartments will be in Arlington and Denton, Texas.
“There is a significant housing supply and demand imbalance in Texas. We just don’t have enough units to keep pace with in-migration trends,” says Rob Anderson, president of Dallas-based BV Capital.
BV Capital says Denton’s rental occupancy rate is closing in on 97%; the average monthly rent has reached $1,344; and effective rents are up 16.1% per year since 2021. The company says it is planning to create an opportunity zone fund, with the as-yet unnamed Denton project to help investors offset their capital gains tax. The anticipated hold is 10 years.
The development will consist of 15 three-story buildings with one- and two-bedroom units, averaging 875 square feet. Amenities will include a clubhouse, pool, dog park and barbecue area.
Bridgeview’s development will be situated at the intersection of East McKinney Street and Hummingbird Lane. The site is located just a few miles from Denton’s historic downtown, the University of North Texas and Texas Woman’s University.
In Arlington, Bridgeview Multifamily has gained city approval to develop a vacant tract near Interstate 20. BV Capital says the site historically has failed to meet developers’ litmus tests from a density perspective.
“Because of our past experience with similar sites we were able to design a unique project that provides the density needed to make the numbers work to make the development viable,” says Steve May, Bridgeview’s president and founder. “Developers have been struggling for years to find a way to develop that site. Fortunately, no one else had the insight to accomplish what our team did with the urban design.”
The 6.34-acre tract is located at the intersection of West Bardin and Matlock roads, and the surrounding neighborhood is a mix of local retail and single-family communities with homes that cost upward of $350,000.
Tentatively dubbed Mercantile Lofts, Bridgeview Multifamily’s plan includes a four-story building with three-story wings with one- and two-bedroom units averaging 796 square feet. Featured amenities include a pool, courtyard and single-level parking garage.
Arlington’s rental inventory is 94% occupied, with an average rent of $1,254 per month. Bridgeview’s project will be situated in a submarket with an 8.2% annual rent growth, nearly double that of the entire DFW Metroplex.
“Our strategic purchase and the city’s support provide a solid foundation for Bridgeview’s new project,” May says. “We intend to deliver a high-quality, well-amenitized housing option for Arlington’s rental market.”
Bridgeview Multifamily has just closed a second off-market acquisition, a 6.34-acre tract at 800 W. Bardin Rd. in Arlington, where it will develop a 250-unit class A project. The developer also recently acquired a 22-acre tract at 3755 McKinney St. in Denton, the future home of a 360-unit upscale project. BV Capital says ground will break on both projects by midyear 2024.
Bridgeview Multifamily presently has six stabilized class A projects, totaling 1,170 units and six developments with an additional 1,966 apartments in various stages of development.
Bridgeview’s properties, valued at $330 million, are located in Arlington, Corpus Christi, Dallas, Denton, Fort Worth, Garland, Houston, Mansfield and New Braunfels, all strong markets within the state and several with high barriers to entry.
BV Capital is Bridgeview Real Estate’s private equity company. Bridgeview is a privately held owner, developer and operator of commercial real estate in Texas with a primary focus on multifamily, office and mixed-use properties.
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