H.I.G. Realty's Bold Expansion into Industrial Storage Market
H.I.G. Realty Partners Expands Its Industrial Storage Portfolio
H.I.G. Capital, a prominent global alternative investment firm, has made significant strides in the industrial outdoor storage (IOS) market. This growth was announced as H.I.G. Realty Partners reported acquiring 20 IOS properties so far this year. The firm’s aggregate IOS portfolio now encompasses 79 net-leased properties across 20 states, totaling an impressive 3.6 million square feet of space on 385 acres, boasting an impressive occupancy rate of 98%.
Strategic Growth in Supply-Constrained Markets
This aggressive expansion strategy highlights H.I.G.'s commitment to enhancing its national IOS platform in areas with high growth potential. The firm’s concentration on supply-constrained markets supports its goal to maximize portfolio value. Since launching its IOS initiative in 2022, H.I.G. has demonstrated its growth capabilities through proactive leasing strategies.
Improving Portfolio Value
Through effective mark-to-market re-leasing strategies, H.I.G. has successfully generated portfolio value. Their ability to navigate the unique supply and demand dynamics of this sub-sector significantly boosts net operating income. H.I.G.'s operational strategies focus on the growing tenant demand for last-mile locations, indicating a robust opportunity within this market.
Acquisition Strategy Focus
Co-Head of H.I.G. Realty Partners, David Hirschberg, stated, "H.I.G. continues to advance its strategy of acquiring IOS assets largely off-market from local owners at compelling yields." He emphasized how stringent zoning restrictions on new IOS development drive substantial cash flow growth.
About H.I.G. Realty Partners
H.I.G. Realty Partners acts as the dedicated real estate platform for H.I.G. Capital. The firm, which manages approximately $70 billion in capital, focuses on a diverse range of investments, including both equity and debt opportunities across various property types globally. This wide-ranging approach includes equity investments in value-add properties, employing strategies to rehabilitate and reposition assets.
Debt and Equity Investments
In addition to equity investments, H.I.G. Realty also engages in debt financing through means such as senior bridge loans and mezzanine loans. Their expertise allows them to capitalize on underperforming assets and portfolios that require operational improvements.
Historical Performance and Future Outlook
Since its inception, H.I.G. Capital has successfully invested in over 400 companies and currently manages a portfolio exceeding 100 firms with sales surpassing $53 billion. This track record of robust investments and operational excellence positions H.I.G. Realty for continued success in the IOS market.
Contact Information for Inquiries
For those interested in learning more about H.I.G. Realty Partners, contact information for key personnel is available:
David S. Hirschberg
Co-Head, H.I.G. Realty Partners
Email: dhirschberg@higrealty.com
Ira Weidhorn
Co-Head, H.I.G. Realty Partners
Email: iweidhorn@higrealty.com
H.I.G. Realty Partners
1271 Avenue of the Americas
22nd Floor
New York, NY 10020
Phone: 212.506.0500
Website: higrealty.com
Frequently Asked Questions
1. What is the recent achievement of H.I.G. Realty Partners?
H.I.G. Realty Partners has expanded its industrial outdoor storage portfolio by acquiring 20 new properties this year.
2. How large is H.I.G.'s industrial outdoor storage platform?
The IOS platform consists of 79 properties covering 3.6 million square feet and 385 acres, with a 98% occupancy rate.
3. What strategy does H.I.G. use for acquisition?
H.I.G. utilizes an off-market acquisition strategy, targeting assets from local owners to achieve substantial yields.
4. What markets does H.I.G. Realty focus on?
The firm targets high-growth and supply-constrained markets in the industrial outdoor storage sector.
5. How can one contact H.I.G. Realty Partners for inquiries?
Interested individuals can contact David S. Hirschberg or Ira Weidhorn via their provided emails.
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