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. 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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