ArcWest Plans to Buy $400 million in Western US

ArcWest Partners, a joint venture between Arc Capital Partners and Belay Investment Group, has received an additional $100 million in capital from Belay. As a result, the firm plans to acquire $400 million to $425 million in urban infill projects in the Western US. ArcWest is particularly bullish on urban infill markets in both California and Texas.

“We specialize in creating urban mixed-use environments in primarily California and Texas to target millennial growth,” Quincy Allen, co-founder and managing partner of ArcWest Partners, tells GlobeSt.com. “There are more than 95 million millennials coming of age and they are the largest and most diverse age group in U.S history. Their strong preference is for urban mixed-use that offers amenities, good food, diversity, walkability, close access to job centers and transit. We pursue this demand with curated value-add repositioning that impact infill locations.”

The firm will execute a value-add strategy, which has become a highly competitive space, particularly in California. However, Allen says that the capital resources will help to curb competition and win deals. “The scale of the capital and the collaborative relationship with Belay Investment Group is a tremendous advantage,” he says. “The programmatic joint venture model allows us to efficiently target middle-market, $10 million to $70 million, deals that are more relationship-driven. We target opportunities that are off-market, a broken/limited process or with non-institutional ownership that have not been fully repositioned. So, our vertically integrated team increases value with our hands-on approach and institutional ownership.” The Chapman Market in Koreatown is an example of the firm’s strategy. ArcWest acquired the 45,000-square-foot retail center from a private owner and performed a complete renovation, including upgrading the tenant mix with more food and restaurant options. The firm also activated the courtyard space at the property.