National + Industrial | March 14, 2023

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.”

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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