New York-based BEB Capital is the investment powerhouse behind new and expanding industrial developments in Tampa Bay.
Most recently, through BEB Lending, the finance platform of BEB Capital, the firm provided a $2.3 million bridge loan to Miami-based Hersh Equity Group for the acquisition financing of a 25,000-square-foot small bay industrial property at 12505 66th St. North in Largo.
Hersh Equity Group is a family office specializing in value-add industrial assets and has acquired over 270,000 square feet with more than 150 tenants in the Tampa metro since December 2021. The real estate investment firm has a goal of acquiring 1 million square feet by the end of 2023, according to BEB.
The Class B asset consists of two concrete block buildings that house 16 small-bay tenants. Each unit is comprised of both office and showroom space, with access to an open warehouse.
Sean Silverbrook, VP of BEB Lending, has cultivated a seven-year-long relationship with one of the principals at HEG and said the group is actively acquiring properties that could be 200,000 square feet of larger in the market.
Typically, BEB’s loans for the property owners range between 7-10% with typical loan sizes ranging from $2 to $25 million; however, it can fluctuate depending on certain market conditions.
“Tampa and St. Petersburg have been growing in population over the last 10 years, especially in the last two years. Whenever we see population growth, income growth follows,” Silverbrook said, regarding the overall trend.
“We do see both new companies coming into the market and existing companies needing to expand their space to make it more suitable. With the increased demand and low vacancy rates, we are seeing unprecedented growth,” noted Keyvan Ghaytanchi, Chief Operating Officer of BEB Capital and President of BEB Lending.
The industrial supply has been diminishing in part to developers converting industrial into office and multifamily, but the behavior is changing in the market and onshore manufacturing is returning to the U.S, greatly contributing to the accelerated demand, Ghaytanchi said.
BEB analyzes between 15 to 20 potential investments on any given day. In February, the firm announced that BEB Lending surpassed $100 million in capital deployed in less than two years of operation. The firm is targeting deploying an additional $150 million by the end of the year.
The group has recently invested in other developments and groups.
Last year, Rockpoint Group and BEB Capital announced a $1 billion industrial-focused joint venture that looks to acquire industrial assets in the Northeastern United States, with a primary focus on Long Island. Following that investment, BEB Capital acquired Ivy 30, a mixed-use multifamily property in Manhattan, for $55 million.