Why this New York firm supports industrial projects in Tampa Bay • St Pete Catalyst
New York-based BEB Capital is the investment powerhouse behind new and expanding industrial developments in Tampa Bay.
Most recently, through BEB Lending, BEB Capital’s financing platform, the company provided a $2.3 million bridge loan to Miami-based Hersh Equity Group to finance the acquisition of a small 25,000 square foot industrial property located at 12505 66th St. North. in Largo.
Hersh Equity Group is a family-owned office specializing in value-added industrial assets and has acquired over 270,000 square feet with over 150 tenants in metro Tampa since December 2021. The real estate investment firm aims to acquire 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 made up of both offices and showrooms, with access to an open warehouse.
Sean Silverbrook, vice president of BEB Lending, has cultivated a seven-year relationship with one of HEG’s directors and said the group is actively acquiring properties that could be larger than 200,000 square feet in the market.
Typically, BEB loans for homeowners range between 7-10%, with typical loan sizes ranging from $2 million to $25 million; however, it may fluctuate depending on certain market conditions.
“Tampa and St. Petersburg have seen population growth over the past 10 years, especially over the past two years. Every time we see population growth, income growth follows,” Silverbrook said, regarding the overall trend.
“We are seeing both new businesses coming onto the market and existing businesses that need to expand their space to make it more suitable. With increasing demand and low vacancy rates, we are seeing unprecedented growth,” said Keyvan Ghaytanchi, COO of BEB Capital and President of BEB Lending.
Industrial supply has shrunk in part as developers convert industry to offices and multifamily, but market behavior is changing and onshore manufacturing is returning to the United States, contributing greatly to the acceleration in demand, Ghaytanchi said.
BEB analyzes between 15 and 20 potential investments every day. In February, the company announced that BEB Lending had surpassed $100 million in capital deployed in less than two years of operation. The company aims to deploy 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 industry-focused joint venture which seeks to acquire industrial assets in the northeastern United States, with a primary focus on Long Island. Following this investment, BEB Capital acquired Ivy 30, a mixed-use multifamily property in Manhattan, for $55 million.