H.I.G. Realty Partners Acquires 55-Property National Industrial Portfolio
NEW YORK – March 14, 2023 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with $55 billion of equity capital under management, is pleased to announce that its affiliate, H.I.G. Realty Partners, has established an Industrial Outdoor Storage (“IOS”) platform to consolidate the fragmented market of small-box warehouses and distribution centers in high-growth, supply constrained markets.
H.I.G. is launching the platform with its acquisition of a 55-property IOS portfolio, totaling 2.3 million square feet in 20 states. The portfolio is 100% leased with a weighted average tenant tenure of 12 years. The properties are located in sub-markets with strong economic and industrial fundamentals, with prevailing market rents approximately 50% higher than the portfolio’s existing rents, providing H.I.G. with a significant mark-to-market opportunity.
“This acquisition gives H.I.G. an immediate, critical mass portfolio of IOS assets, allowing us to create a platform to consolidate a highly fragmented space, characterized by limited institutional competition and unique supply/demand fundamentals,” said David Hirschberg, Co-Head of H.I.G. Realty Partners. “New supply within the IOS sector will remain constrained due to stringent zoning regulations within such infill locations, as well as a broader focus by developers on larger-scale industrial assets.”
About H.I.G. Realty Partners
H.I.G. Realty Partners is the real estate platform of H.I.G. Capital, a leading global private equity and alternative assets investment firm with $55 billion of equity capital under management.* H.I.G. Realty Partners focuses on small-to-mid cap real estate, targeting both equity and debt investments across all property types located throughout the U.S., Europe, and Latin America. Equity investments are concentrated on the acquisition of value-add assets, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning and rebranding assets that have been capital starved and/or poorly managed. Debt investments include senior bridge loans, mezzanine loans and preferred equity collateralized by transitional properties and portfolios. For more information, please refer to the H.I.G. website www.higcapital.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $55 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.