Faropoint Closes Urban Industrial Fund at $915M

The investment vehicle exceeded its $750 million target.

The campus at 4600-4680 Lewis Road in Stone Mountain, Ga.
One of Faropoint’s properties is a three-building campus in Stone Mountain, Ga. Image courtesy of JLL

Calling it a significant milestone for the company, Faropoint has closed its flagship Industrial Value Fund III with $915 million in commitments from institutional investors around the globe. The vehicle surpassed the initial target of $750 million.

Threadmark Partners Limited supported the fundraising for Fund III as the global placement agent. Investors included public pension plans and insurance firms located in North America, Europe and the Middle East.

To date, Fund III has acquired more than 80 urban industrial buildings across 12 markets in the U.S. and expects to purchase more than 200 warehouses throughout its deployment period. The investment vehicle is diversifying its assets across different markets, sectors, tenants, vintages and building types to optimize portfolio composition.

READ ALSO: The Case for Last-Mile Facilities

Faropoint focuses on urban logistics, seeking out off-markets opportunities and using advanced data and machine learning tools as part of its strategy to expand its portfolio. Last fall, the firm secured a minority stake investment from Invesco Real Estate, but financial details were not disclosed.

Growing portfolio

A Hoboken, N.J.,-based industrial real estate investment manager, Faropoint is currently operating in 16 markets across the East Coast, Midwest, Southwest, Texas and California. Since its inception in 2012, the firm has acquired more than 400 small-bay, last-mile facilities and managed more than $2.5 billion in assets.

Earlier this month, Faropoint acquired a 40,000-square-foot building on 2.2 acres in Deer Park, N.Y., in a sale-leaseback deal with Jefryn Park Realty LLC, an affiliate of Nanz Customer Hardware. Nanz, a metal hardware manufacturer, will now be leasing the property at 105 E. Jefryn Blvd., according to Long Island Business News.

In May, Faropoint purchased 4600-4680 Lewis Road, a 220,380-square-foot, three-building campus in Stone Mountain, Ga., from Brennan Investment Group. The acquisition brought the firm’s Atlanta portfolio to more than 2 million square feet of industrial space, according to CommercialEdge information.

Other investments in the past 12 months included two industrial parks in Bergen County, N.J., totaling 770,064 square feet, and a three-building, 312,950-square-foot industrial portfolio in Charlotte, N.C.

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