H.I.G. Realty Partners Acquires 55-Asset IOS Portfolio

H.I.G. Realty Partners has established an Industrial Outdoor Storage (IOS) platform to focus on acquisitions in high-growth, supply constrained markets.

H.I.G. is launching the platform with its acquisition of a 55-property IOS portfolio, totaling 2.3 million square feet in 20 states. The portfolio is 100% leased with a weighted average tenant tenure of 12 years. The properties are located in sub-markets with strong economic and industrial fundamentals, with prevailing market rents approximately 50% higher than the portfolio’s existing rents.

“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, 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.”