Faropoint sells portfolio of 109 institutional-quality last-mile warehouses for $481M

Disposition in current market climate validates real estate investment manager’s strategy of aggregating individual warehouses near population centers

Faropoint, a leading real estate investment firm focused on last-mile industrial properties in high-population growth markets, on Tuesday said it sold 109 institutional-quality, last-mile logistics buildings to a private buyer for $481 million.

The portfolio consists of 6.8 million square feet of warehouse space largely concentrated in Atlanta, Philadelphia, Houston and Memphis.

The close of this portfolio sale in the current market climate further demonstrates the Hoboken-based company’s successful strategy as an aggregator of individual warehouses in growth markets across the U.S.

“This deal marks one of the largest portfolio sales of last-mile urban logistics centers in recent years and positions Faropoint to continue to provide significant value to its investors through its last-mile industrial funds,” Faropoint Chief Relations Officer Raz Rahamim said.

The 109-building portfolio includes multitenant warehouse and light industrial properties, with each building averaging 62,000 square feet. The portfolio is 98% leased and occupied by approximately 200 local, regional and national tenants. During the firm’s three-year hold period, Faropoint executed 120 leases across the portfolio, significantly increasing net operating income and lease commitments.

“Our firm is extremely bullish about last-mile industrial, and we are optimistic that fundamentals will remain strong in this segment of the market long-term due to constrained supply,” Faropoint Chief Investment Officer Ohad Porat stated. “We will continue to closely monitor market conditions and adjust our strategy as needed in response to macroeconomic trends and future volatility.”

This disposition follows a record-breaking year of activity in 2021, during which time Faropoint acquired 148 buildings in 85 separate transactions.

“Transacting at such a high volume across nine offices and aggregating data from thousands of deals allows our team to act with much more accuracy and certainty when vetting and underwriting deals.” Faropoint CEO Adir Levitas said. “As the current macroeconomic climate evolves, we will continue to assess market conditions, and are well-capitalized to act when the right opportunities present themselves.”

Eastdil Secured advised Faropoint on the sale and financing of the portfolio, and Duval & Stachenfeld LLP served as legal adviser.