H.I.G. Closes $600M Real Estate Fund

By Barbra Murray, Contributing Editor

Sami Mnaymneh (left) and Tony Tamer (right), Co-CEOs of H.I.G

H.I.G. Realty Partners closed on H.I.G. Realty Partners III, the firm’s value-add investment vehicle. Fund III secured capital commitments totaling $593 million, handily surpassing its hard cap of $500 million.

“The Fund will have a broad mandate to invest across asset classes and will utilize a hands-on, value added, operationally focused approach that seeks to generate substantial asset appreciation,” Sami Mnaymneh and Tony Tamer, Co-CEOs of H.I.G., said in a joint prepared statement.

The fund’s general partner and related parties were among the list of contributors, as was a $52 million co-investment vehicle. H.I.G. Realty, the real estate affiliate of multi-billion-dollar global alternative asset management firm H.I.G. Capital had 29 investors by January 20, at which point $471.7 million had been raised, according to an SEC filing.

Fund III, launched in June 2015, has so far amassed a portfolio of eight assets accounting for 20 percent of the commitments. H.I.G. Realty did not respond to an inquiry regarding Fund III’s acquisitions, but the company has been doing its share of shopping over the last year or so. One of its larger purchases took place in 2016, when H.I.G. Realty joined Silverpeak Real Estate Partners and Rising Realty Partners on the $210 million acquisition of The Garland Center, a 733,000-square-foot office and data center property in downtown Los Angeles.

Whatever assets Fund III has already snapped up, it still has quite a bit of shopping to do, thanks to its being overcommitted. The focus will remain on value-add opportunities in small to mid-cap properties in markets with improving fundamentals across the U.S.