By Joshua Burd
Investment firm Faropoint has sold a multistate, 6.8 million-square-foot portfolio of warehouse and light industrial properties for $481 million.
The company, which has its U.S. headquarters in Hoboken, said the 109 buildings are largely concentrated in Atlanta, Philadelphia, Houston and Memphis. A private buyer purchased the portfolio, in a deal that highlights Faropoint’s strategy of aggregating individual warehouses in growth markets across the U.S., thanks in part to a proprietary origination platform that collects data from its team of investment professionals across nine domestic offices.
Eastdil Secured advised Faropoint on the sale and financing of the portfolio, while Duval & Stachenfeld LLP served as legal adviser.
“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,” said Raz Rahamim, the firm’s chief relations officer.
According to the company, buildings in the portfolio average 62,000 square feet. The collection of properties was 98 percent leased at the time of the sale and occupied by some 200 local, regional and national tenants, while Farpoint completed 120 leases across the portfolio during its three-year hold period.
“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,” Faropoint Chief Investment Officer Ohad Portat said. “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 banner year in which Faropoint acquired 148 buildings in 85 separate transactions, the firm said.
“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,” CEO Adir Levitas said. “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.”
