H.I.G. Enters Industrial Outdoor Storage Sector with 55-Property Acquisition

H.I.G. Realty Partners, the real estate arm of H.I.G. Capital, has established an industrial outdoor storage (IOS) platform to consolidate the fragmented market of small-box warehouses and distribution centers. The platform was launched with H.I.G.’s acquisition of a 55-property IOS portfolio, totaling 2.3 million square feet across 20 states.   Acquisition terms weren’t disclosed. The portfolio ... The post H.I.G. Enters Industrial Outdoor Storage Sector with 55-Property Acquisition appeared first on Connect CRE.

H.I.G. Enters Industrial Outdoor Storage Sector with 55-Property Acquisition

H.I.G. Realty Partners, the real estate arm of H.I.G. Capital, has established an industrial outdoor storage (IOS) platform to consolidate the fragmented market of small-box warehouses and distribution centers. The platform was launched with H.I.G.’s acquisition of a 55-property IOS portfolio, totaling 2.3 million square feet across 20 states.  

Acquisition terms weren’t disclosed. The portfolio is 100% leased, with prevailing market rents approximately 50% higher than the portfolio’s existing rents, providing 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, New York-based 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.” 

The post H.I.G. Enters Industrial Outdoor Storage Sector with 55-Property Acquisition appeared first on Connect CRE.

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