By Joshua Burd
Faropoint, the fast-growing investment firm focused on last-mile industrial properties, has sold a minority stake in its business to Invesco Real Estate.
The company, whose U.S. team is based in Hoboken, announced the deal this week as it continues to build a portfolio that has added some 20 million square feet across more than 400 warehouses since 2018. Much of that is driven by what it describes as proprietary technology, in-house artificial intelligence software and the intense use of data to source and underwrite deals in the country’s top-tier industrial submarkets.
Invesco’s new stake in Faropoint is undisclosed.
“We are excited for this strategic partnership with Invesco Real Estate, whose breadth of experience and global reach can help us grow our business and amplify our impact,” said Adir Levitas, CEO and founder of Faropoint, which focuses on small-bay warehouses.
Invesco Real Estate’s platform investments team, led by Senior Director Andrew Lane, structured the transaction. Eastdil Secured and Adler Stachenfeld LLP represented Faropoint, while Berkshire Global Advisers and Greenberg Traurig LLP represented the global investment manager.
“This investment strengthens our commitment to optimizing our execution across highly fragmented markets such as infill industrial real estate by leveraging technology to efficiently identify and accurately underwrite investment opportunities nationally,” said Bert Crouch, head of North America at Invesco Real Estate. “As a part of our broader strategic initiative to vertically integrate operating platforms across our highest conviction sectors, we believe this investment into Faropoint will allow us to capitalize on secular tailwinds affecting this compelling subsector.”
New Jersey has been a key market in Faropoint’s growth. Just last month, the firm acquired two industrial parks in northern Bergen County for a combined $144.5 million, touting the continued strength of the light industrial and shallow bay sector.
It noted this week that, through its sourcing platform, it logs $5 billion to $7 billion of quarterly deal flow, granting its team unique insight into market dynamics and trends.
“The opportunities for our two companies to do great things together are endless,” said Ohad Porat, CIO at Faropoint. “The partnership with Invesco Real Estate is a very natural one, as we’ve been working closely together and trading insights for some time. We look forward to this exciting collaboration.”
Camber, Advance sell 770,000 sq. ft. Bergen County industrial portfolio in deal with Faropoint
