Faropoint Secures $81.5 Million Refi for 16 Fund III Properties

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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