Hoboken-based real estate giant Faropoint on Monday announced the completion of a $273 million portfolio refinancing for its Industrial Value Fund II. The transaction, dubbed “Project Walk-Off,” encompasses a massive 61-asset collection of last-mile industrial properties.
The financing was provided by a bank syndicate led by Capital One and J.P. Morgan. This move marks Faropoint’s largest single portfolio refinancing by asset count, totaling nearly 3.5 million square feet of infill industrial space.
The refinancing represents a pivotal shift for Fund II as it enters its “value realization” phase. By moving from short-term acquisition financing to long-term debt, Faropoint is positioning itself to return significant capital to its investors.
“By executing this transaction on attractive terms, we’ve optimized our debt structure and positioned ourselves to return capital to our investors,” Idan Tzur, chief financial officer at Faropoint said. He noted that the deal is a direct result of the value-add initiatives implemented across the 61 properties since their acquisition in 2021 and 2022.
The 61-asset portfolio is highly stabilized and strategically diversified across eight major U.S. metropolitan areas in the Northeast, Southeast and Midwest.
-
Occupancy: 96% leased.
-
Tenant Base: 103 unique tenants.
-
Lease Term: Weighted average lease term (WALT) of 3.8 years.
-
Total Size: ~3.5 million square feet.
-
Loan Details: Two-year, non-recourse loan with three 12-month extension options.
The deal was arranged by CBRE’s debt and structured finance team, led by Tom Traynor, Tom Rugg, Mark Finan and Henry Fenmore. It also highlights the growing relationship between Faropoint and major institutional lenders.
“This transaction continues to strengthen our long-term partnerships with Capital One and J.P. Morgan,” Mark DeCesare, head of corporate finance at Faropoint said. “Their confidence in our platform reflects the institutional quality of our operations.”
Faropoint has become one of the most active players in the urban logistics sector. Unlike traditional real estate firms, Faropoint utilizes a proprietary tech-enabled platform to identify and acquire smaller, “inaccessible” industrial assets that aggregate into high-performing institutional portfolios.
