Faropoint Continues Refinancing With New $273M Deal for Industrial Portfolio
Faropoint has raked in $273 million to refinance a national industrial portfolio of 61 assets in its latest transaction in the hundreds of millions. This particular deal marks the largest number of assets that Faropoint has refinanced to date.
Capital One and J.P. Morgan, which led a bank syndicate, provided a two-year non-recourse loan, which allows for three 12-month extensions. CBRE arranged the refinancing.
The portfolio, called Project Walk-Off, is located across eight metros through the Midwest, Southwest and Northeast regions. The 96 percent leased portfolio carries an average weighted lease term of 3.8 years, with each property purchased between 2021 and 2022, with 103 tenants pouring in capital investments in the assets.
Project Walk-Off spans almost 3.5 million square feet, consisting of light and infill properties.
The refinancing is a part of Faropoint's Fund III strategy, which raised $916 million and targets urban logistics. As of late June, Faropoint said that Fund III invested in 200 properties, accounting for $1.8 billion in gross asset value. In addition to today's news, the investment firm recently closed on a $340 million refinancing for a 46-asset portfolio.
Overall, the Hoboken, New Jersey-based firm aims to provide a boost to both its cash management and debt structuring, which allows it to support long-term stable financings instead of only short-term ones.
"This $273 million refinancing represents a significant milestone for Fund II and underscores the strength of our portfolio," Idan Tzur, chief financial officer at Faropoint, said in a statement.
"By executing this transaction on attractive terms - our largest refinancing to date in Fund II ? we believe we've optimized our debt structure and positioned ourselves to return capital to our investors, a testament to the value creation we've achieved across this 61-property portfolio."
In addition, Faropoint launched Industrial Value Fund IVin June, seeking to raise $1 billion. This pool is targeting logistics properties in primary, gateway and secondary national regions surrounded by scarce supply, with in-place rents below the market. Also, Fund IV projects to assemble a portfolio with roughly 200-250 properties.
Source: GlobeSt/ALM