Faropoint Secures $81.5 Million Refi for 16 Fund III Properties
September 17 2024 - 10:10AM
Business Wire
Transaction strengthens Faropoint's debt
strategy and enhances financial flexibility in the Industrial Last
Mile sector
Faropoint, a leading tech-enabled real estate investment firm
focused on last-mile industrial properties in high population
growth markets, announced today that it has secured an $81.5
million loan from Blackstone for 16 properties in its Industrial
Value Fund III. This refinancing follows the successful final close
of Fund III in June, which raised $915 million, exceeding its $750
million target.
The strategic refinancing involves 16 industrial facilities
totaling 1.2 million square feet well diversified across six key
markets. This transaction further diversifies Faropoint's pool of
debt sources while bolstering risk management across its portfolios
and freeing up capital for future acquisitions.
"This refinancing deal aligns perfectly with our strategic
vision," said Idan Tzur, Chief Financial Officer at
Faropoint. "It allows us to diversify our debt strategy and add
significant dry powder to our resource pool, enabling us to pursue
attractive market opportunities. By doing so, we're fortifying our
financial agility and readiness to navigate dynamic market
shifts."
The refinancing is part of Faropoint's broader strategy to
optimize its debt structure and enhance cash management stability.
It allows the company to transition from short-term acquisition
financing to long-term debt against specified stabilized asset
batches.
"In today's volatile market, our data-driven approach to debt
portfolio management has been a key differentiator," said Mark
DeCesare, Head of Corporate Finance at Faropoint. "This
refinancing not only optimizes our debt structure but also
demonstrates our ability to make timely, strategic decisions based
on comprehensive market analysis and quantitative risk
assessments."
Faropoint's approach to debt portfolio management, which guided
this refinancing, combines continuous performance analysis with
strategic planning. This refinancing embodies the Fund’s financing
strategy. A dynamic acquisition facility is utilized to streamline
acquisitions and aggregate properties. Once a diversified pool of
properties becomes stabilized, such as this pool, it is then
refinanced into permanent debt, creating additional dry powder in
the acquisition facility.
"Faropoint's use of proprietary in-house technology, coupled
with our on-the-ground acquisition strategy to aggregate attractive
investment opportunities, has allowed us to close on a high volume
of last-mile industrial opportunities," Tzur added. "This
transaction with Blackstone not only enhances our financial
flexibility but also validates our approach in the competitive
industrial real estate market."
For more information contact Ori Regev, VP Capital Development
at ori@faropoint.com.
About Faropoint
Faropoint is a tech-enabled, vertically integrated real estate
investment manager specializing in urban logistics within the US
industrial sector. With approximately 120 employees, Faropoint
leverages data and deep market relationships to address
inefficiencies in the industrial real estate market. The firm
operates in 16 key US markets, securing off-market deals through
its extensive broker network and strong local presence. Since its
inception in 2012, Faropoint has acquired over 400 warehouses and
manages more than $2.5 billion in assets, including uncalled
commitments. For more information, visit Faropoint.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240917633308/en/
Investor Relations Contact: Ori Regev Faropoint | VP,
Capital Development ori@faropoint.com