Clear Height Properties Recapitalizes 15-Property Portfolio, Forms JV with Harbert Management Corporation

Clear Height Properties (“Clear Height”) has completed a 15 property, $55+ million recapitalization through the formation of a joint venture partnership with Harbert U.S. Real Estate, an investment strategy sponsored by Harbert Management Corporation (“HMC”). The transaction marks HMC’s entry into the Chicago industrial market. It also provides a level of capital that Clear Height will use as it pursues the goal of doubling in size over the next twelve months.

“This is another important milestone in the growth and expansion of Clear Height Properties,” says Gary Rose, COO, Clear Height Properties. “It both validates the founding principles of the firm and paves the way for greater opportunity to develop our platform for the benefit of our partners, investors and team members.”

The 15 assets total over 1,000,000 square feet with more than 130 tenants. The assets included in the recapitalization are located throughout the Chicago metro area and typically are multi-tenant facilities that are approximately 90 percent occupied.

“We are pleased to announce the successful closing of this transaction, and HMC’s first joint venture with Clear Height Properties,” stated Taylor Pearce, Director of Investments, HMC. “Additionally, we are excited to partner with Clear Height, who we believe to be a capable and experienced operating partner that has a proven track record in the marketplace.” This transaction represents HMC’s second investment in the Chicago market in the last two years.

HMC seeks income and capital appreciation through a diverse portfolio of real estate investments. HMC and its affiliates have owned, developed and managed multifamily, office, industrial, retail and hotel properties throughout the United States. HMC’s approach is hands-on, targeting properties that it believes are undervalued, and where value can be created through focused operational and financial management. HMC seeks transactions typically between $20 million and $80 million that are too large for individual investors but too small for the larger funds.

The recapitalization of these assets continues the evolution and progression of Clear Height Properties which currently has a portfolio that exceeds $250 million in assets under a three-pronged acquisition philosophy that has focused on:

• Value-Add Light Industrial—facilities that are two rights off the expressway, are in in-fill locations, that are single or multi-tenant, and over 30,000 SF
• Core-Plus Industrial—typically newly developed, single tenant net leased facilities with some level of future value creation to it.
• Suburban Office—well-located assets in the first tier outside of the city that are in need of renovation and repositioning to bring them in line with market expectations.

“We continue to be very bullish about the opportunities to make strategic acquisitions that align with our multi-dimensional investment philosophy and to help the tenants in our portfolio solve their real estate needs and grow their businesses,” adds Joe Sergi, Chief Revenue Officer, Clear Height Properties.

Clear Height Properties was represented in the transaction by the Industrial Capital Markets team at JLL, including:  Robin Stolberg, Senior Director Industrial Capital Markets; Kurt Sarbaugh, Senior Director Industrial Capital Markets; and John Huguenard, Co-Head and Senior Managing Director, Industrial Capital Markets.