Faropoint, a Hoboken-based real estate investment firm focused on last-mile industrial properties, on Tuesday said it secured an $81.5 million loan from Blackstone for 16 properties in its Industrial Value Fund III.
This refinancing follows the successful final close of Fund III in June, which raised $915 million, exceeding its $750 million target.
The refinancing involves 16 industrial facilities totaling 1.2 million square feet well-diversified across six key markets.
“This refinancing deal aligns perfectly with our strategic vision,” Idan Tzur, chief financial officer at Faropoint, said. “It allows us to diversify our debt strategy and add significant dry powder to our resource pool, enabling us to pursue attractive market opportunities. By doing so, we’re fortifying our financial agility and readiness to navigate dynamic market shifts.”
The refinancing is part of Faropoint’s broader strategy to optimize its debt structure and enhance cash management stability. It allows the company to transition from short-term acquisition financing to long-term debt against specified stabilized asset batches.
“In today’s volatile market, our data-driven approach to debt portfolio management has been a key differentiator,” Mark DeCesare, head of corporate finance at Faropoint, said. “This refinancing not only optimizes our debt structure, but also demonstrates our ability to make timely, strategic decisions based on comprehensive market analysis and quantitative risk assessments.”
Faropoint’s approach to debt portfolio management, which guided this refinancing, combines continuous performance analysis with strategic planning. This refinancing embodies the fund’s financing strategy. A dynamic acquisition facility is utilized to streamline acquisitions and aggregate properties. Once a diversified pool of properties becomes stabilized, such as this pool, it is then refinanced into permanent debt, creating additional dry powder in the acquisition facility.
