LOS ANGELES, June 22, 2016 /PRNewswire/ -- Belay Investment Group, LLC ("Belay") and Arc Capital Partners LLC ("Arc Capital Partners") announce the launch of a programmatic joint venture to acquire and reposition up to $150 million of multifamily and retail properties in California and Texas. The joint venture, ArcWest Partners, will target value-add and opportunistic acquisitions in urban submarkets experiencing strong millennial demand growth.
Belay's investment in ArcWest Partners comes from Belay Partnership Ventures II, LP (the "Fund"), which is anchored by a $200 million commitment from California State Teachers' Retirement System (CalSTRS) and is targeting $500 million of equity. For over 10 years, Belay has pursued value-added real estate strategies in major U.S. markets through collaborative investment programs designed to identify and support the growth and evolution of high caliber operating partners.
"We are very excited to partner with Arc Capital Partners and believe strongly in their millennial-driven investment strategy," said Barry Chase, Managing Principal of Belay. "Quincy and Neville combine fiduciary discipline, local market knowledge and the execution capabilities required to successfully identify properties that can achieve strong risk-adjusted returns. Their successful track record of investing in urban markets drew Belay to the relationship."
"CalSTRS has been a long term supporter of emerging managers," said Mike DiRé, Director of Real Estate for CalSTRS. "As the lead investor in the Fund, we are pleased to be providing a path of growth for Arc Capital Partners and look forward to sharing in the success of ArcWest Partners."
Arc Capital Partners was founded in 2013 by Quincy Allen and Neville Rhone, who spun out together from Canyon Partners. The firm acquires and operates middle-market properties in urban locations that can be repositioned to capture millennial demand growth. Primarily focused on the Western U.S., Arc Capital Partners' $100 million real estate portfolio includes properties in top markets for millennials such as Austin, Texas and San Diego, California.
"We are honored to be chosen for the Fund's first joint venture," said Quincy Allen, Managing Partner of Arc Capital Partners. "We are seeing many mispriced, middle-market opportunities and look forward to collaborating with Belay to build our portfolio and grow our platform."
"Millennials are changing the fabric of what defines thriving urban real estate," said Neville Rhone, Managing Partner of Arc Capital Partners. "Forming ArcWest Partners with Belay allows us to build upon our vision with a partner that provides more than just investment capital."
About Belay Investment Group, LLC
Belay Investment Group, founded in 2004 as AVP Advisors, LLC, is a Los Angeles-based Registered Investment Advisor that pursues compelling real estate investment opportunities on behalf of its institutional investors. Belay is wholly owned and operated by its four Managing Principals, who average 25 years of buy- and sell-side real estate experience as principal investors and senior management of institutional investment management and advisory firms.
About Arc Capital Partners LLC
Arc Capital Partners is a Los Angeles-based boutique real estate company co-founded by Quincy Allen and Neville Rhone to acquire and reposition urban properties to capture millennial demand growth. The firm targets middle-market ($10 million - $50 million in value) multifamily, retail and mixed-use properties in the Western U.S. that require value-add and opportunistic business plans.
SOURCE Arc Capital Partners LLC