Faropoint Launches $300M Industrial Leaseback Fund
The company aims to capitalize on the high demand for alternative lending.
Faropoint has launched a $300 million target industrial sale-leaseback fund that will capitalize on the debt gap of local and regional U.S. banks as they strive to reduce their commercial real estate exposure.
This follows the close of Faropoint’s Industrial Value Fund III, which was $915 million, exceeding its $750 million target.
By targeting strategically located, functional infill industrial properties ranging from 20,000 to 200,000 square feet, with an average lease term of 10 years, the fund is uniquely positioned to meet businesses’ liquidity needs through off-market transactions.
Since 2018, Faropoint has successfully acquired over 80 sale-leaseback buildings, totaling approximately 5 million square feet, all without any defaults. This approach ensures the preservation and enhancement of residual value, setting it apart from typical SLB deals.
The Industrial SLB Fund has already acquired and placed 12 buildings totaling approximately 1 million square feet under contract. These properties, located in key markets such as Long Island, Atlanta, Chicago, Charlotte, N.C., and Northern New Jersey, are all fully occupied.
READ ALSO: Are Co-Warehousing Solutions a Game-Changer for Industrial?
Faropoint last month acquired a 16-building portfolio in key logistics markets Jacksonville, Fla., and Memphis, Tenn., for $105 million.
Busy year for industrial funds
Faropoint’s announcement is among several recent industrial fund news.
Zenith IOS formed a new $700 million joint venture with institutional investors advised by J.P. Morgan Asset Management, focused only on industrial outdoor storage properties across the U.S. This marks the duo’s second such partnership, as they previously joined forces in February 2022 for a similar deal.
The combined joint ventures will boast a gross asset value exceeding $1.5 billion, making it one of the country’s largest portfolios of institutional-quality IOS assets.
The companies will pursue core infill locations that have minimal building density, in the top 40 markets, with transactions ranging from $5 million to $20 million.
Dermody Properties has closed its fourth commingled fund, Dermody Properties Industrial Fund IV LP, securing over $1 billion in commitments. That matches the amount raised by the previous vehicle, DPIF III, as every investor recommitted to DPIF IV, along with two returning investors from DPIF II and four new investors.
The capital will target value-add, single-asset, portfolio investments and new development projects. Its intention is to acquire, develop and operate logistics facilities in infill locations across the U.S. DPIF IV’s investor base includes public and corporate pension funds, insurance companies and other institutional investors from the U.S., Canada and Europe.
In Miami, BridgeInvest, an alternative investment manager focused on CRE credit, closed its fourth vintage specialty credit fund for industrial assets. Combined with parallel investment vehicles, the capital raised totaled more than $670 million in equity.
The fund will also target the multifamily, hospitality and retail sectors, focusing on providing senior-secured financing to existing and transitional assets ranging from $20 million to $150 million.
Fund IV is the company’s largest fundraiser, with a diverse pool of limited partners. BridgeInvest aims to close as much as $1.2 billion in transactions across its unique lending programs over the next 24 months.
You must be logged in to post a comment.