REAL ESTATE TECHNOLOGY

Faropoint Sells Portfolio of 109 Institutional-Quality Last-Mile Warehouses For $481M

Faropoint | July 06, 2022 | Read time : 9:00 min

Faropoint
Faropoint, a leading real estate investment firm focused on last-mile industrial properties in high population growth markets, today announced the sale of 109 institutional-quality, last-mile logistics buildings to a private buyer for $481 million. The portfolio consists of 6.8 million square feet of warehouse space largely concentrated in Atlanta, Philadelphia, Houston and Memphis.

The close of this portfolio sale in the current market climate further demonstrates Faropoint’s successful strategy as an aggregator of individual warehouses in growth markets across the U.S. The firm leverages a proprietary origination platform to collect data from its team of investment professionals across nine U.S. offices. This curation of data arms Faropoint with actionable insights and analytics to identify mostly off-market opportunities to acquire last-mile industrial buildings.

“This deal marks one of the largest portfolio sales of last-mile urban logistics centers in recent years and positions Faropoint to continue to provide significant value to its investors through its last-mile industrial funds,”

Faropoint Chief Relations Officer Raz Rahamim

The 109-building portfolio includes multi-tenant warehouse and light industrial properties, with each building averaging 62,000 square feet. The portfolio is 98 percent leased and occupied by approximately 200 local, regional and national tenants. During the firm’s 3-year hold period, Faropoint executed 120 leases across the portfolio, significantly increasing NOI and lease commitments.

“Our firm is extremely bullish about last-mile industrial and we are optimistic that fundamentals will remain strong in this segment of the market long-term due to constrained supply,” said Faropoint Chief Investment Officer Ohad Portat. “We will continue to closely monitor market conditions and adjust our strategy as needed in response to macroeconomic trends and future volatility.”

This disposition follows a record-breaking year of activity in 2021, during which time Faropoint acquired 148 buildings in 85 separate transactions.

“Transacting at such a high volume across nine offices and aggregating data from thousands of deals allows our team to act with much more accuracy and certainty when vetting and underwriting deals.” said Faropoint Chief Executive Officer Adir Levitas. “As the current macroeconomic climate evolves, we will continue to assess market conditions, and are well-capitalized to act when the right opportunities present themselves.”

Eastdil Secured advised Faropoint on the sale and financing of the portfolio, and Duval & Stachenfeld LLP served as legal advisor.

About Faropoint
Faropoint is a vertically integrated, data-driven real estate investment manager that leverages data and deep market relationships to achieve superior risk-adjusted returns. Faropoint targets inefficiencies in the marketplace that can be solved with technology and scaled to create meaningful positions using cutting-edge, proprietary, real estate underwriting and portfolio management methods. The company invests in markets with strong demographics and high construction barriers to entry, such as Atlanta, Dallas, Philadelphia, Northern New Jersey, Chicago, Tampa, Miami, and Memphis. Faropoint currently owns and manages more than 20 million square feet of industrial assets.

About Eastdil Secured
As the most relevant and trusted advisor in the commercial real estate capital markets, Eastdil Secured creates value for clients through creative, actionable ideas and flawless execution. With an unrivaled combination of capital markets expertise and in-depth understanding of real estate fundamentals, Eastdil Secured delivers best-in-class advice on mergers and acquisitions, sales, joint ventures, debt placement, structured credit and loan sales to investors around the world. Headquartered in New York, Eastdil Secured has a broad global footprint to support clients with offices across the United States in Atlanta, Boston, Charlotte, Chicago, Dallas, Los Angeles, Miami, Orange County, San Francisco, Seattle, Silicon Valley and Washington, D.C., and internationally in London, Paris, Frankfurt, Milan, Dublin, Dubai, Hong Kong and Tokyo.

Spotlight

Have you ever tried to imagine what work will be like in 2020? It’s not easy, but that is exactly what CoreNet Global’s Corporate Real Estate 2020 initiative is all about – envisioning the future of corporate real estate (CRE) and the workplace. Corporate Real Estate 2020 is a research and leadership development program designed and managed by CoreNet Global members to address the business environment of the future and to collect and distribute best practices, tools and studies to meet future business needs effectively. A follow up to Corporate Real Estate 2000 and CoRE 2010, Corporate Real Estate 2020 brings together more than 280 of the industry’s most thought-provoking and leading minds, as well as several other professionals from areas outside the CRE realm.


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