Industrial specialist Faropoint has secured $1.57 billion in credit facilities from 14 financial institutions to bolster its focus on last-mile assets in high population growth markets.
The Hoboken, New Jersey-based real estate investment manager wrapped the financing on August 1 and will use the credit lines to fund its next wave of dealmaking. KeyBank led the $1.6 billion of credit facilities arranged over the past 14 months as left lead arranger and administrative agent alongside JPMorgan and Citizens Bank, which both worked as joint lead arrangers on certain facilities atop 11 other participant banks.
“These debt commitments position us to move quickly when the right opportunity arises, in order to execute on our immediate and long-term growth objectives,” said Idan Tzur, chief financial officer at Faropoint. “The expanded size of these facilities and our ability to immediately draw down funds to facilitate deals allows Faropoint to pursue opportunities more efficiently and with greater transactional certainty.”
KeyBank’s participation in the financing package extends its existing relationship with Faropoint, which dates back to 2018. “The company’s purchase momentum and use of technology to vet and manage their deal pipeline continues to boost their credibility in the competitive industrial space,” said Joshua Mayers, senior vice president and senior banker in KeyBank’s institutional real estate group.
This Faropoint financing package marks its fifth credit facility secured through KeyBank. Faropoint intends to use the credit facilities to fuel investment opportunities on last-mile industrial buildings, a subsector the firm believes will benefit from current macroeconomic conditions.
“Faropoint’s relationship-centric acquisition strategy combined with our use of proprietary in-house technology to aggregate attractive investment opportunities, has allowed us to close on a high volume of last-mile industrial opportunities over the past few years,” said Adir Levitas, CEO of Faropoint.
In 2021, the firm acquired 144 warehouses across 82 deals comprising 8.5 million square feet. “Through these credit facilities, we have even greater financial flexibility to be early movers with an on-the-ground presence that appeals to sellers in the market because of our ability to close quickly,” Levitas said.
Faropoint currently operates across nine markets covering the Northeast, Southeast, Midwest and Texas. The firm expanded office operations into Chicago, Baltimore and South Florida in recent quarters as part of its acquisition initiatives.