H.I.G. Realty Nabs SoCal Logistics Center in Off-Market Deal

H.I.G. Capital’s affiliate, H.I.G. Realty Partners, recently completed the acquisition of the Southern California Logistics Center (SCLC), a seven property 2008-2017 vintage 3.4 million-square-foot industrial portfolio located on the former George Air Force Base in Victorville, CA, in an off-market transaction.

SCLC is 100 percent leased and provides mission-critical logistics support to tenants in the consumer products, manufacturing, food and beverage, and aviation sectors.

There are numerous build to suit developments for well-known consumer products and e-commerce tenants near the asset in the Inland Empire North submarket. The portfolio’s adjacent labor pool and location directly north of the Inland Empire region (1.4 percent vacancy rate and 24 percent year-over-year rent growth) on the grounds of the Southern California Logistics Airport will continue to provide intrinsic value.

“The acquisition of SCLC is a continuation of H.I.G. Realty’s ability to identify undervalued, strategically located off-market industrial opportunities,” said David Hirschberg, co-head of H.I.G. Realty Partners. “H.I.G. will employ its value-add expertise to significantly enhance the attractive in-place cash flow from a strong roster of tenants that have occupied SCLC for over a decade.”