The deal announced Wednesday involves Invesco acquiring an undisclosed minority stake in Faropoint’s platform. Faropoint has become one of the most active buyers of small-bay warehouses in the U.S. by leveraging its vertically integrated capabilities and proprietary technology. Since 2018, Faropoint has acquired more than 400 warehouses and 20 million square feet of last-mile industrial properties in high-growth markets.
The transaction was structured by Invesco Real Estate’s Platform Investments team, led by Andrew Lane, senior director.
“We are excited for this strategic partnership with Invesco Real Estate, whose breadth of experience and global reach can help us grow our business and amplify our impact,” said Adir Levitas, founder and CEO of Faropoint.
“The opportunities for our two companies to do great things together are endless,” Ohad Porat, chief investment officer at Faropoint, said. “The partnership with Invesco Real Estate is a very natural one, as we’ve been working closely together and trading insights for some time. We look forward to this exciting collaboration.”
“This investment strengthens our commitment to optimizing our execution across highly fragmented markets such as infill industrial real estate by leveraging technology to efficiently identify and accurately underwrite investment opportunities nationally,” Bert Crouch, head of North America at Invesco Real Estate, said. “As a part of our broader strategic initiative to vertically integrate operating platforms across our highest conviction sectors, we believe this investment into Faropoint will allow us to capitalize on secular tailwinds affecting this compelling subsector.”
Against the backdrop of a tightened macroeconomic landscape, the last-mile sector continues to display resiliency due to its strong fundamentals, including low vacancy rates and construction starts. Last month, Faropoint acquired two industrial parks in the competitive North Bergen County submarket for a combined $144.5 million.
Faropoint was represented by Eastdil Secured and Adler Stachenfeld LLP. Berkshire Global Advisers and Greenberg Traurig represented Invesco Real Estate.