NEW YORK–(BUSINESS WIRE)–#CashOnReturns–H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with over $45 billion of equity capital under management, is pleased to announce that its affiliate, H.I.G. Realty Partners, has 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% leased and provides mission critical logistics support to tenants in the consumer products, manufacturing, food and beverage, and aviation sectors. The portfolio’s robust adjacent labor pool and location both directly north of the Inland Empire region east of Los Angeles (1.4% vacancy rate and 24% year over year rent growth) and on the grounds of the Southern California Logistics Airport will continue to provide intrinsic value to users that operate within the second densest population cluster in the U.S. SCLC will provide H.I.G. with attractive current cash-on-cash returns, as well as upside via a value-add business plan that is well positioned to benefit from the positive industrial fundamentals in the supply-constrained Los Angeles MSA.
“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.”
“We are excited to own this mission-critical portfolio at a significant discount to replacement cost,” said Adam Belfer, Principal of H.I.G. Realty Partners. “Furthermore, in a post COVID environment, SCLC is well positioned to benefit from the strong labor pool and business friendly environment in the Inland Empire North submarket, as evidenced by the recent announcements of adjacent “build to suit” developments for well-known consumer products and e-commerce tenants.”
About H.I.G. Realty Partners
H.I.G. Realty Partners is the real estate platform of H.I.G. Capital, a leading global alternative assets investment firm with over $45 billion of equity capital under management. H.I.G. Realty Partners manages $8.4 billion of assets and focuses on small-to-mid cap real estate, targeting both equity and debt investments across all property types located throughout the U.S., Europe, and Latin America. Equity investments are concentrated on the acquisition of value-add assets, employing a hands-on, operationally focused approach that seeks to generate substantial cash flow and asset appreciation through rehabilitating, redeveloping, repositioning and rebranding assets that have been capital starved and/or poorly managed. Debt investments include senior bridge loans, mezzanine loans and preferred equity collateralized by transitional properties and portfolios. For more information, please refer to the H.I.G. website www.higcapital.com.
About H.I.G. Capital
H.I.G. is a leading alternative assets investment firm with over $45 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.
David S. Hirschberg