LOS ANGELES—Arc Capital Partners LLC has entered into a strategic partnership with Columbia Pacific Advisors to pursue value-add investment opportunities on the West Coast. Columbia Pacific contributed operating and investment capital to Arc Capital Partners, a company that regularly invests in middle investment markets with high employment demand.

The partnership will allow both companies to tap into millennial demand and the ongoing demographic shift. According to Arc Capital Partners managing director Neville Rhone, the shift in demographics provides an opportunity to reimagine the culture and sustainability of an asset by adding value. The firm currently has a pipeline of $400 million in investment opportunities, and has already made its first purchases: a 139-unit multifamily building in Austin, TX, and a Sears Distribution center in Dallas, CO. Both of the transactions were purchased off market.

Columbia Pacific regularly invests in companies that are poised for growth. The firms chose Arc Capital Partners for its acquisitions, development, asset management and operations experience. The two firms are seeking to invest in mid-range properties that are overlooked by larger funds, but too large for smaller firms to pursue.

Arc Capital was first formed in 2013 by Quincy Allen and Rhone, who together have 40 years of experience in the commercial real estate space and in institutional investing.