By Joshua Burd
Investment manager Faropoint has secured a new credit facility to support its growing industrial portfolio, in the latest piece of some $1.6 billion in funding that it has closed since last summer.
The firm, whose U.S. team is based in Hoboken, has inked commitments from 14 financial institutions over the past 14 months. They include KeyBank as left lead arranger and administrative agent, which has teamed with J.P. Morgan and Citizens Bank as joint lead arrangers on certain facilities and a syndicate of 11 participant banks.
The credit facilities total $1.57 billion.
“KeyBank is proud to continue our longstanding leadership role with Faropoint,” said Joshua Mayers, senior vice president and senior banker in KeyBank’s institutional real estate group. “The company’s purchase momentum and use of technology to vet and manage their deal pipeline continues to boost their credibility in the competitive industrial space. We are honored to partner with a large group of high-quality syndicated bank partners to deliver creative financing solutions solving Faropoint’s financing needs.”
Faropoint has worked with KeyBank since 2018, the firms said, and the newest commitment will mark its fifth credit facility secured through the financial institution. The funding leaves the investor well-positioned to add additional industrial properties in top-tier locations, taking advantage of what it feels will be investment opportunities that arise as a result of current macroeconomic conditions.
“These debt commitments position us to move quickly when the right opportunity arises, in order to execute on our immediate and long-term growth objectives,” said Idan Tzur, Faropoint’s chief financial officer. “The expanded size of these facilities and our ability to immediately draw down funds to facilitate deals allows Faropoint to pursue opportunities more efficiently and with greater transactional certainty.”
The firm plans to expand its footprint using an origination platform it has developed through its local presence and network of more than 300 local, regional and national brokers.
“Faropoint’s relationship-centric acquisition strategy combined with our use of proprietary in-house technology to aggregate attractive investment opportunities, has allowed us to close on a high volume of last-mile industrial opportunities over the past few years,” said Adir Levitas, the firm’s CEO. “In 2021, we acquired 144 warehouses over 82 deals totaling 8.5 million square feet. Through these credit facilities, we have even greater financial flexibility to be early movers with an on-the-ground presence that appeals to sellers in the market because of our ability to close quickly.”