LOS ANGELES–(BUSINESS WIRE)–#CommercialRealEstate–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 an off-market acquisition of the Saugus Station Industrial Portfolio (“Saugus Station”), located in Santa Clarita, CA. Saugus Station consists of 24 buildings totaling approximately one million square feet across a 70 acre campus, as well as an adjacent 24 acre, fully horizontally improved industrial development parcel.
Saugus Station is 100% leased to tenants operating primarily in the film, television, entertainment and content production industry, and is within the broader San Fernando Valley industrial market. The San Fernando Valley achieved a 1.1% industrial vacancy rate in Q3 2021 and experienced 5.2% annual rent growth over the past five years, with minimal new supply under construction. Saugus Station 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 rapid expansion of film and television content production in the Los Angeles MSA.
“The acquisition of Saugus Station provides H.I.G. with a unique opportunity to capitalize on a supply constrained market for entertainment and content production warehouse space,” said David Hirschberg, Co-Head of H.I.G. Realty Partners. “H.I.G. will employ its value-add expertise to significantly enhance the portfolio’s cash flow.”
“With Los Angeles soundstages operating at full capacity and limited industrial inventory to house production equipment, sets, and props, we believe Saugus Station presents a very compelling investment opportunity,” said Adam Belfer, Principal of H.I.G. Realty Partners. “We look forward to implementing our capital plan to reposition Saugus Station into a best-in-class logistics facility that will serve both entertainment industry-focused and also local tenants in Santa Clarita and throughout greater Los Angeles.”
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 global 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