H.I.G. Capital LLC
11/06/2024 | Press release | Distributed by Public on 11/06/2024 08:40
H.I.G. Realty Partners Sells Huntsville Industrial Investment
H.I.G. Realty Partners Sells Huntsville Industrial Investment
NEW YORK - November 6, 2024 - H.I.G. Capital ("H.I.G."), a leading global alternative investment firm with $65 billion of capital under management, is pleased to announce that its affiliate, H.I.G. Realty Partners, has sold Huntsville Industrial, a 660,000 SF warehouse facility in Huntsville, AL. The property is strategically located adjacent to the Huntsville International Airport, one of the largest air cargo airports in the U.S., as well as the Huntsville Intermodal Rail Terminal.
H.I.G. executed a multi-faceted value-add strategy on this investment, including identifying two parcels of land on the property that could be leased to industrial outdoor storage ("IOS") tenants. In addition, H.I.G. secured a significant lease termination payment from an existing tenant that was occupying the property, pursuant to a below-market lease, while concurrently executing a new long-term lease with a leading aerospace manufacturer for 100% of the property. These initiatives resulted in a 20% NOI lift, providing H.I.G. with an attractive early exit opportunity.
"The successful sale of Huntsville Industrial reflects H.I.G.'s ability to identify undervalued and poorly managed assets in mission critical locations with attractive supply / demand dynamics," said David Hirschberg, Co-Head of H.I.G. Realty Partners. "Through strategic leasing negotiations with an existing and a prospective tenant, H.I.G. was able to generate returns that exceeded our initial underwriting."
"The combination of Huntsville's concentration of engineering & STEM knowledge workers and its entrenched aerospace & defense, space exploration, and advanced manufacturing industries motivated us to identify opportunities in this market," said Adam Belfer, Managing Director of H.I.G. Realty Partners. "Our market thesis was validated through our ability to immediately re-lease the property to one of the largest privately held spacecraft manufacturers in the world, without incurring any downtime."
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 investment firm with $65 billion of equity capital under management.* H.I.G. Realty Partners 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 hig.com.
*Based on total capital raised by H.I.G. Capital and its affiliates.
About H.I.G. Capital
H.I.G. Capital is a leading global alternative investment firm with $65 billion of capital under management.* Based in Miami, and with offices in Atlanta, Boston, Chicago, Los Angeles, New York, and San Francisco in the United States, as well as international affiliate offices in Hamburg, London, Luxembourg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, São Paulo, Dubai, and Hong Kong, H.I.G. specializes in providing both debt and equity capital to middle market 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. also 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 400 companies worldwide. The Firm's current portfolio includes more than 100 companies with combined sales in excess of $53 billion. For more information, please refer to the H.I.G. website at hig.com.