Faropoint closes Urban Industrial Value Fund III with $915M

Male Hand Holding Thousands of Dollars Inside Empty Industrial Warehouse.

Hoboken-based Faropoint, an industrial real estate investment manager, on Thursday announced the final close of its flagship Industrial Value Fund III with $915 million in commitments. The total amount is well over the firm’s initial $750 million target.

The fundraise follows the prior successes of Faropoint’s Value Funds I and II, which pursued a strategy of aggregating institutionally inaccessible assets to achieve a premium through a portfolio sale.

To date, Fund III has acquired over 80 urban industrial warehouses across 12 U.S. markets, and aims to acquire more than 200 warehouses throughout its deployment period. With transactions averaging under $10 million, the fund is diversifying its assets across different markets, sectors, tenants, vintages and build types to optimize portfolio composition.

“Exceeding our fundraising target for Industrial Value Fund III is a testament to the confidence our investors have in our strategy and execution capabilities,” Adir Levitas, CEO of Faropoint, said. “Our focus on urban logistics and our ability to capitalize on off-market opportunities, combined with our advanced data and machine learning tools, uniquely positions us to optimize risk-adjusted returns.”

“Despite a challenging fundraising environment, the successful closing of Fund III marks a significant milestone for Faropoint,” Raz Rahamim, global head of capital development and investor relations of Faropoint, said. “Our unique strategy and resilient asset class have attracted significant investor commitments from multiple continents, validating our investment approach and operational expertise. This achievement is a testament to the dedication and hard work of our exceptional team, whose efforts have been instrumental in driving our success. We are excited to continue building on this momentum and delivering exceptional results for our investors.”

The fund has secured investments from premier institutions across North America, Europe and the Middle East, including public pension plans and insurance firms, underscoring Faropoint’s strong market reputation and track record. Threadmark Partners Ltd. supported the fundraising as the global placement agent.