Faropoint has closed a $223 million refinancing for its Industrial Value Fund III portfolio, securing the financing from Blackstone Real Estate Debt Strategies.
The non-recourse, floating-rate loan covers 26 industrial buildings totaling approximately 1.7 million square feet across seven U.S. markets, with significant concentrations in Atlanta and Florida. The portfolio is leased to 75 tenants and maintains over 90% weighted average occupancy. The loan carries an initial three-year term with two one-year extension options.
The assets were originally acquired as part of a large portfolio transaction completed in June 2025. This refinancing represents the third financing transaction between Faropoint and BREDS, further strengthening their ongoing lending relationship.
Faropoint said the refinancing is a key step in its broader capital strategy for Fund III, enabling the firm to transition assets from acquisition financing into permanent debt. This shift is expected to unlock additional capital, allowing the firm to continue pursuing new acquisitions while managing portfolio risk.
The company’s financing approach is designed to support the full lifecycle of its investments, using flexible acquisition facilities initially and then refinancing stabilized assets to recycle capital efficiently.
Faropoint focuses on last-mile industrial properties and urban logistics assets across 16 U.S. markets. Since its founding in 2012, the firm has acquired more than 550 warehouses, representing over $4 billion in industrial real estate assets.
KEY QUOTES:
“Closing our third transaction with BREDS is a testament to the depth and quality of this lending relationship. This major refinancing in Fund III strengthens the capital structure at an important moment, by moving the acquired assets into permanent financing, we’re creating meaningful reinvestment capacity that allows us to continue executing on the fund’s acquisition strategy.”
Idan Tzur, Chief Financial Officer, Faropoint
“This refinancing with BREDS speaks to the mutual confidence we’ve built across these transactions. The underlying portfolio, which originated from our largest single acquisition to date last summer, validates our ability to move quickly from acquisition to permanent financing. We look forward to continuing to build on this relationship as the platform scales.”
Mark DeCesare, Head of Corporate Finance, Faropoint
“The industrial sector, which continues to experience strong fundamentals with low vacancy and resilient demand, is one of our key areas of investment. We are pleased to refinance this high-quality industrial portfolio and expand our relationship with Faropoint.”
Tony LaBarbera, Co-Head of Americas Private Investments, Blackstone Real Estate Debt Strategies
