A new venture between Box Equities and Artemis Real Estate Partners has completed its first acquisition, a 500,000 square foot warehouse in Kings Mountain, North Carolina, with a single tenant, HanesBrands.
The business and acquisition were revealed on Monday by Box Equities, a real estate investment group formed earlier this year by the Dabah family, and Artemis, a Washington, DC-based private equity firm with capital of 6 billion dollars to invest in real estate.
“The Artemis team has knowledge and market connections that complement our own. We can do more together than each of us could do alone, ”said Haim Dabah, Co-Founder and Chairman of Box Equities. “We focus on industrial real estate in the area of consumer goods. “
Dabah did not want to disclose the financial details of the acquisition. He said future acquisitions of the partnership could be structured in different ways.
He also said that Box Equities will continue to work on separate real estate transactions from Artemis, and that Box Equities has its own war chest made up of family funds, private equity and family office.
“The partnership allows us to scale much faster,” said Mac Dabah, co-founder and CEO of Box Equities, and son of Haim. Another son, Michael Dabah, is a co-founder and general counsel of Box Equities. Ori Schwartz is Director of Acquisitions.
Artemis provides “a wealth of knowledge, connections and resources,” Mac added. “As the supply chain crisis forces retailers and wholesalers to take a fresh look at facilities, locations and workforce availability, we see many new opportunities that will accelerate the growth of this joint venture. “
“We greatly value the experience and the deep relationships of the retail team which give the partnership differentiated advantages,” said Mike Vu, Director of Artemis, in a statement. “Box Equities has an innate understanding of the interplay between retailers and logistics, which gives our company unique expertise in identifying new opportunities. “
Artemis invests in real estate with different levels of risk and requirements that may involve different degrees of building improvement, management changes or tenants changes.
New York-based Box Equities, established for 10 months, now has a portfolio of six industrial real estate properties totaling over 2.3 million square feet. “By the end of the year, we plan to add four more properties,” Mac said.
“Our strategy has been to find properties in secondary markets outside of the big cities where there is a stable pool of loyal workers and less turnover,” Haim explained.
The company is not interested in large markets like Secaucus or Edison, NJ or New York. It’s also not interested in last mile distribution facilities, the kind Amazon needs for fast delivery to close to customers, although Box Equities isn’t ruling out that possibility.
Warehouse space and reliable labor have become more valuable as e-commerce continues to soar, and real estate companies, private equity firms, landlords, and sales firms in the world. Retail and e-commerce stores like Amazon are building up warehouses and distribution centers.
Companies are under increasing pressure to expand their workforce and their distribution and fulfillment centers to meet growing consumer demand for products. The global pandemic, supply chain bottlenecks and labor shortages have compounded the challenges.
The Dabahs said their company works closely with local economic development authorities to create jobs and generate investment opportunities in the country’s markets.
“The current supply chain disruptions that we see will continue for the foreseeable future,” Haim said. “Today’s retailers and manufacturers need a reliable and efficient workforce to get products to consumers. By investing in areas with loyal labor pools, we alleviate many of the problems currently facing the logistics industry. “
Marc Belsky, the real estate brokerage firm bearing his name, negotiated the partnership. “This very strategic partnership joins the $ 6 billion private equity fund with a team whose relationships extend directly to the C-suite of many Fortune 500 retailers,” Belsky said in a statement. “This partnership will give Artemis and Box the ability to quickly capitalize on market and tenant demand, as well as rental information not available to others. “
Haim Dabah, a 40-year veteran of the retail and fashion industry, and his family have a long history of building and managing businesses in the fields of fashion, retail and technology, including investments in Stylitics, Kidbox and Talk Space, and formerly Regatta, which developed private labels for retailers such as Vera Wang’s Simply Vera for Kohl’s. In addition to helping launch the development of private labels, Haim and his brothers Ezra and Isaac founded Gitano, which became a major denim brand for the mass market in the 1980s. Ezra is also CEO of Kidpik and Nina Footwear Corp.