Founded in 2005, Mdh Partners Llc has rapidly become a prominent name in the United States industrial real estate sector. Building upon the legacy of a fifty-year-old real estate development firm, this Atlanta-based company boasts participation in over $6 billion of acquisitions, developments, and asset management, covering an impressive 80 million square feet. MDH Partners operates as both a strategic advisor and a keen investor, consistently demonstrating exceptional financial acumen and a commitment to delivering high returns.
What truly sets MDH Partners LLC apart is their remarkable track record. Both the firm and its founding principals have consistently generated returns exceeding 25% IRR on investments throughout their careers spanning three decades. Crucially, they have upheld an unblemished record of investor capital preservation and have successfully navigated numerous economic recessions and market corrections, honoring every loan commitment. This history of financial prudence and high performance makes MDH Partners a trusted and reliable entity in the competitive real estate investment landscape.
In a significant move to expand its investment capabilities, MDH Partners LLC launched its inaugural discretionary fund, MDH Fund I, in 2019, securing $350 million in capital from prestigious university endowments and foundations. Building on this success, they introduced MDH Fund II in 2021, initially raising $575 million from the same discerning investor base. Due to strong investor demand and compelling market opportunities, Fund II was upsized to $750 million in 2022 and was fully invested by 2024. Demonstrating continued growth and investor confidence, MDH Partners closed its third fund, Fund III, in February 2024, amassing an impressive $1.2 billion in equity. Currently, MDH Partners is strategically deploying this capital across the United States, with a particular emphasis on high-growth markets in the Southeast and Southwest regions.
Before establishing its independent fund platform, MDH Partners LLC engaged in a highly successful programmatic joint venture with Bain Capital Real Estate and a major university endowment from 2014 to 2018. This collaboration resulted in the accumulation of a substantial portfolio encompassing 14 million square feet of industrial properties located in fifteen cities across eight states.
Through a strategic combination of value-add acquisitions and well-executed speculative development, MDH Partners strategically positioned its portfolio within key growth markets and vital logistics hubs throughout the Southeastern United States.
Guided by a business strategy formulated in 2013, MDH Partners LLC strategically targeted multi-tenant “last mile” facilities for acquisitions and Class A logistics centers for new developments. This forward-thinking approach allowed them to construct a portfolio ideally suited to capitalize on the burgeoning e-commerce sector, as well as serving the enduring needs of traditional local, regional, and national distributors. The highly profitable MDH/Bain joint venture culminated in the sale of its entire portfolio to Blackstone in November 2018, generating opportunistic returns for investors.
MDH Partners LLC also played a pivotal advisory role for Blackstone in 2010-11, providing expertise in the acquisition of 45 million square feet of properties across 30 markets nationwide. This strategic initiative led to the creation of IndCor, which subsequently became the second-largest industrial real estate company in the United States before its sale to GLP in 2015. Concurrently, MDH collaborated with Wells Fargo Real Estate Capital on the acquisition, repositioning, and disposition of distressed industrial properties emerging from the recessionary period. Notably, both Blackstone and Wells Fargo served as crucial capital partners for MDH Partners’ initial acquisitions of underutilized corporate manufacturing, distribution, and office facilities between 2005 and 2007. These properties were expertly redeveloped, leased, and sold at the market peak, prior to the financial downturn of 2008, showcasing MDH’s astute market timing and operational expertise.
The Visionary Founders of MDH Partners LLC
MDH Partners LLC was founded by Jeffrey Small and Michael Pelt in 2005, following the successful sale of their previous enterprise, M.D. Hodges Enterprises. The initials of this predecessor company were adopted as a tribute to its legacy. The heritage of real estate development runs deep in Mr. Small’s family, as his grandfather, Mark Durward Hodges, was a renowned developer in the Southeast, establishing the original company in the 1950s. Mr. Small gained early exposure to the business working summers for his grandfather in the early 1980s, officially joining the firm in 1993 and ascending to the role of CEO in 1997. Mr. Pelt joined Hodges in 1998 to spearhead the company’s newly formed office and mixed-use development division and subsequently became Chief Investment Officer, overseeing all acquisition and development activities. In 1999, Mr. Small strategically sold his family’s business to Blackstone, who retained the existing management team to ensure continued growth. In 2005, on behalf of Blackstone, Mr. Small facilitated the second sale of the firm to Clarion Partners. At its zenith, Hodges controlled a vast portfolio encompassing 13 million square feet of office and industrial buildings, 1,600 acres of commercial and industrial land, and 4,000 acres of timberland, demonstrating the scale and breadth of their operations.
Teamwork and Collaborative Culture at MDH Partners
A cornerstone of MDH Partners LLC’s success is its deeply ingrained culture of teamwork and collaboration. This ethos, coupled with their consistent delivery of market-leading returns, has attracted top talent. Several former members of the Hodges management team rejoined Mr. Small and Mr. Pelt to become partners at MDH, including Chris Stanley, Vice Chairman, and Mike Herman, Managing Director – Operations. In building and expanding MDH Partners LLC, the team proudly upholds the legacy of the late Mr. Hodges, who established a strong reputation for excellence, quality, and unwavering integrity.
Today, MDH Partners LLC maintains a national presence with three strategic office locations across the United States. Atlanta serves as the company headquarters, complemented by satellite offices in Dallas, TX, and Santa Monica, CA, enabling them to effectively manage and expand their nationwide portfolio.
MDH Partners LLC in the News
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