Faropoint, a vertically integrated real estate investment manager focused on urban logistics, on June 24 announced the launch of its flagship Industrial Value Fund IV, targeting $1 billion in capital commitments. The fund has secured a combined $225 million in seed commitments from the Teacher Retirement System of Texas.
Urban logistics is the movement and management of goods within cities. It includes last-mile delivery, urban warehousing, traffic and route optimization, and sustainable transport.
Fund IV follows Fund III, which raised $916 million (including $29 million in co-investments), surpassing its $750 million target, and is now mostly deployed across about 200 properties representing $1.8 billion in asset value. Fund IV will follow on its predecessor’s strategy and try to capitalize on urban logistics tailwinds, as well as the sector’s fragmented and largely uninstitutionalized nature, which has high entry barriers for traditional investors.
Fund IV will pursue assembling a portfolio of up to 250 assets, primarily targeting suite sizes between 20,000 and 40,000 square feet, with a property size of 20,000 square feet to 100,000 square feet.
The fund will invest across gateway, primary, and select secondary U.S. markets, applying Faropoint’s proprietary sourcing and pipeline management system, FarOS, to identify and transact on high-value opportunities. Faropoint’s REXy, an in-house AI-driven asset valuation and mark-to-market underwriting engine, will play a central role in optimizing portfolio construction and underwriting discipline.
The Fund’s primary strategy remains mark-to-market, particularly in markets where current rents are materially below market. This will be complemented by lease-up opportunities in undersupplied corridors and a dedicated strategic development sleeve. These development efforts will be selectively deployed in supply-constrained core markets where rental rates have increased enough to warrant new construction.
“Fund IV represents our ongoing commitment to pairing local market expertise with cutting-edge technology to drive value while attempting to minimize downside risk,” said Adir Levitas, CEO of Faropoint. “With access to over $30–40 billion in deal flow annually through FarOS and market insight driven by REXy, we believe we are uniquely positioned to construct diversified portfolios that reflect secular urban logistics trends and dynamic tenant needs.”
The initial close for Fund IV was in June.
