Faropoint acquires 10-building last-mile portfolio from Kushner Cos. for $132.5M

Acquisition marks investment firm’s entrance into New York metropolitan area amid highly active 2021

Jersey City-based Faropoint acquired a 10-building portfolio located throughout northern New Jersey from Kushner Cos. for $132.5 million, according to a Tuesday announcement from JLL.

The real estate investment firm has seen enormous growth in 2021, acquiring 148 buildings totaling nearly 9 million square feet in 85 separate transactions. This deal marks its entry into the New York metro market as a part of the company’s strategic national expansion.

“This acquisition is strategically important for Faropoint due to the portfolio’s proximity to the high-barrier-to-entry, densely populated New York metro submarket,” said Ohad Porat, chief investment officer at Faropoint. “We remain one of the most active investors in the industrial sector, and, as we continue to expand geographically up the East Coast and across the nation, we are hyperfocused on investment opportunities in the New Jersey and New York metropolitan area.”

The properties in Faropoint’s newly acquired portfolio are located within in-fill areas throughout Bergen and Morris counties and represent a combined 654,633 rental square feet. The portfolio is currently 98% leased to a variety of national and local tenants, spanning industries such as health care, biotechnology, distribution and adjacent community service providers.

As part of Faropoint’s national strategy to strengthen assets’ appeal to institutional investors, each building in the newly acquired portfolio will undergo a capital improvement program, which will include various upgrades such as repainting, implementation of new LED lighting and sustainable features, and the replacement of roofs.

“The portfolio’s flexible design is ideally suited to accommodate a wide array of distribution and light industrial users in an area of northern New Jersey where demand continues to outpace supply,” said Vadim Greenberg, head of acquisitions at Faropoint. “Faropoint has been watching and analyzing the northern New Jersey industrial market for quite some time, and we believe that this market is well-positioned to capture future growth, as some of the core locations in the New York metro area have experienced unprecedented rent growth during the last twelve months.”

Properties within the portfolio are predominantly located adjacent to routes servicing the Northeast Corridor (via Interstates 80, 280, 287 and 95), offering transportation access to an area encompassing one-third of the North American population, or over 130 million consumers, within a single day’s drive.

A JLL Capital Markets team representing the seller included Senior Managing Director Jose Cruz, Managing Director Marc Duval, Managing Director Michael Oliver, Senior Director Jordan Avanzato and Director Nick Stefans.