Englewood-based Sitex Group owns and operates a portfolio of industrial and logistics properties across New Jersey, New York, and Florida. Its portfolio spans a mix of large-format, big-box warehouses, small-bay space, industrial parks, and IOS/low-coverage sites, serving a broad range of industrial and logistics tenants from Fortune 500 companies to small businesses.
The Sitex strategy is centered on investing in industrial and logistics properties in “infill” locations. Many of these properties are 40+ years old with significant deferred maintenance.
“We’ve had success modernizing and repositioning these properties to meet the needs of today’s end users,” Blake Chroman, Principal, Sitex Group, said.
“This space is often difficult or impossible to replicate through new construction given land constraints in these markets. I wouldn’t say that value-add investing is more profitable or easier than ground-up construction – it’s just a different investment strategy that requires competence in renovating older properties and bringing them up to today’s standards.”
Sitex is a long-term investor and manager of its portfolio.
“We occasionally sell assets when it makes sense, but we’re never not in buy mode,” he said.
Sitex is not the only firm using this approach. Value-add investing has become an increasingly popular strategy over the past 20 years, as more investors recognize the opportunity in repositioning older infill assets.
“Our ‘secret sauce’ has been the relationships we’ve built with property owners, real estate brokers and other professionals over the years, along with the fact that we pay market pricing and don’t play games.”
