Los Angeles-based Arc Capital Partners has received a second allocation of $100M from Belay Investment Group to invest in mixed-use and retail properties in California and Texas.

With the second investment allocation, the JV of Arc Capital and Belay, called ArcWest Partners, is now positioned to acquire a combined $400M to $425M of urban properties.

Arc Capital Partners Managing Partner Neville Rhone told Bisnow the JV would target properties in walkable urban environments with a focus on food-oriented retail or mixed-use above retail. Neville said AcrWest Partners plans to look at designated opportunity zone areas and traditional areas.

“We invest in both opportunity zone and more traditional areas but we are always most focused on emerging neighborhoods that have often been overlooked but resonate with the younger generation,” Neville said.

Neville said the JV plans to invest the capital over time, rather than all at once.

“Further, since we focus on smaller properties, we continue to see a high volume of opportunities that are overlooked by larger players,” he said. “We are bullish because the demand for urban living is on a multi-decade growth path as the millennial generation, which is larger than the baby boom, comes of age."

ArcWest Partners was formed in 2016.

The partnership’s first investments were the Chapman Market, a 45K SF historic and experiential retail center in Koreatown, and the Jones Building, a 30K SF creative mixed-use property in the Silver Lake neighborhood of Los Angeles.