Faropoint, a tech-enabled real estate investment firm specializing in last-mile industrial properties in high-growth markets, announced today that it has secured a $150 million acquisition line from a leading U.S. financial institution for its Industrial Sale-Leaseback (ISLB) Fund. This is the second loan facility provided by this institution, following a previous $130 million facility for Faropoint’s Fund II, further solidifying their strategic partnership.
The acquisition line will support Faropoint’s ISLB Fund, which targets strategically located, functional industrial properties ranging from 20,000 to 200,000 square feet, with average lease terms of 10 years. This strategy allows Faropoint to take advantage of the increasing demand for sale-leaseback transactions, especially in a liquidity-constrained market. Launched earlier this year, the ISLB Fund addresses tightening credit markets, as many businesses look to unlock capital from their real estate assets while maintaining operational control.
“This $150 million acquisition line from our financial partner is a testament to the strength of our ISLB strategy and our ability to identify and capitalize on attractive opportunities in the last-mile industrial sector,” said Idan Tzur, Chief Financial Officer at Faropoint. “We are excited to deepen our relationship with a trusted institution that shares our vision and financial expertise, enabling us to navigate today’s challenging credit environment with confidence.”
This financing aligns with Faropoint’s broader strategy to diversify its funding sources and expand its presence in the last-mile industrial real estate market. The flexibility of this funding allows Faropoint to move quickly on emerging opportunities, reinforcing its leadership in tech-driven real estate investment.
Mark DeCesare, Head of Corporate Finance at Faropoint, highlighted the importance of the firm’s longstanding relationships:
“The majority of our financial partners are repeat collaborators, reflecting the trust we’ve earned and the success of our data-driven investment approach. This second collaboration further strengthens our reputation as an innovative and reliable player in the industrial real estate market.”
The ISLB Fund, with a $300 million target, aims to address the debt gap resulting from reduced commercial real estate exposure by local and regional U.S. banks. By focusing on well-positioned, high-functioning properties with long-term leases and strong tenant credit, Faropoint meets liquidity needs while preserving and enhancing property value.
For more information about Faropoint’s investment strategies, contact Ori Regev, VP of Capital Development, at [email protected].
