61-asset transaction follows recent $340M Fund III refinancing, optimizing capital structure across portfolios
HOBOKEN, N.J.–(BUSINESS WIRE)–#faropoint—Faropoint, a leading tech-enabled real estate investment firm focused on last-mile industrial properties in high population growth markets, received $273 million of financing proceeds from a bank syndicate led by Capital One and J.P. Morgan for Project Walk-Off, a 61-asset portfolio of light / infill industrial properties totaling nearly 3.5 million square feet. This loan represents the largest portfolio refinance by Faropoint to date by number of assets, following a 46-asset refinance closed earlier this year in Fund III.
As Fund II moves through its value realization phase, this refinancing optimizes the capital structure of stabilized assets and enhances the fund’s distribution capacity.
The portfolio is currently 96% leased with a weighted average lease term of 3.8 years and is located across the U.S. in eight major metros in the Northeast, Southeast, and Midwest. The properties were acquired between 2021 and 2022 and have received capital investments from its 103 unique tenants and Faropoint’s value-add initiatives. This transaction extends the debt maturity through the remainder of the fund life for these assets, while also diversifying the fund’s pool of debt sources and bolstering risk management. The two-year, non-recourse loan includes three, 12-month extensions and was arranged by CBRE’s Tom Traynor, Tom Rugg, Mark Finan and Henry Fenmore.
“This $273 million refinancing represents a significant milestone for Fund II and underscores the strength of our portfolio,” said Idan Tzur, Chief Financial Officer at Faropoint. “By executing this transaction on attractive terms – our largest refinancing to date in Fund II – we believe we’ve optimized our debt structure and positioned ourselves to return capital to our investors, a testament to the value creation we’ve achieved across this 61-property portfolio.”
The refinancing is part of Faropoint’s broader strategy to optimize its debt structure and enhance cash management stability. It allows the company to transition from short-term acquisition financing to long-term debt against specified stabilized asset batches.
“This transaction continues to strengthen our long-term partnerships with Capital One and J.P. Morgan, relationships we’ve built across multiple funds and numerous transactions over the years,” said Mark DeCesare, Head of Corporate Finance at Faropoint. “Their confidence in our platform and ability to execute complex portfolio financings reflects the institutional quality of our operations. We look forward to continuing to grow alongside these key lending partners as we scale our business.”
“We’re pleased to continue our partnership with Faropoint on this significant portfolio financing,” said Seth Wiener, SVP, CRE NY Team Lead at Capital One. “These accretive financing partnerships align with our strategy of supporting experienced industrial sponsors.”
This refinancing embodies Fund II’s financing strategy of using dynamic acquisition facilities to streamline property aggregation, then refinancing stabilized asset pools into permanent debt to optimize the debt profile.
For inquiries or to learn more about Faropoint’s investment strategies, please contact Ori Regev, SVP, Head of Product Marketing, at [email protected].
About Faropoint
Faropoint is a tech-enabled, vertically integrated real estate investment manager specializing in urban logistics within the US industrial sector. With approximately 120 employees, Faropoint leverages data and deep market relationships to address inefficiencies in the industrial real estate market. The firm operates in 16 key US markets, securing off-market deals through its extensive broker network and strong local presence. Since its inception in 2012, Faropoint has acquired over 550 warehouses, representing approximately $4.1 billion in industrial real estate assets.
Contacts
Investor Relations Contact:
Ori Regev
Faropoint | SVP, Head of Product Marketing
[email protected]
