Faropoint, a Hoboken-based, tech-enabled real estate investment firm specializing in last-mile industrial properties, announced Wednesday it has secured a $340 million loan from Truist Bank and U.S. Bank. This refinancing is the largest single transaction in the company’s history and covers 46 assets within its Industrial Value Fund III.
The strategic financing package secures long-term debt for 49 industrial buildings, totaling 3.7 million square feet, diversified across 12 key U.S. markets.
Faropoint’s leadership emphasized that the refinancing is a key move to optimize its capital structure and unlock funds for its aggressive acquisition pipeline. The deal allows the company to transition stabilized assets from short-term acquisition financing to more permanent debt, enhancing cash management stability and risk mitigation.
- Watershed Moment: “This $340 million refinancing represents a watershed moment for Fund III and demonstrates the strength of our portfolio construction,” Idan Tzur, CFO at Faropoint said. “The proceeds from this transaction will fuel our acquisition pipeline as we work toward Fund III’s full deployment.”
- Value Creation: Mark DeCesare, head of Corporate Finance, highlighted that the substantial additional proceeds demonstrate the successful “realization of our value-creation strategy,” freeing up capital to continue scaling the portfolio.
The loan also marks the launch of what Faropoint hopes will be a long-term partnership with both Truist and U.S. Bank.
The record refinancing comes as Faropoint continues its growth momentum in the high-demand urban logistics sector.
The firm recently launched its flagship Industrial Value Fund IV, the next fund in its series, which is targeting $1 billion in capital commitments. Faropoint’s strategy involves using proprietary data and an extensive broker network to acquire off-market, smaller “under the institutional radar” warehouses, a strategy that has led to the acquisition of over 500 warehouses since 2012.
This successful refinancing of the Fund III assets provides the necessary financial flexibility to achieve the full deployment of Fund III and continue scaling the portfolio into the next fund.
