Faropoint, a technology-enabled real estate investment manager specializing in last-mile industrial properties, announced it closed a $325 million refinancing with Capital One and Citizens for a portfolio of industrial properties within its Logistic Fund II.
The non-recourse, floating-rate loan includes a one-year initial term with four one-year extension options, giving the fund additional flexibility to align financing duration with its broader portfolio strategy.
The portfolio includes 62 industrial buildings totaling 3.3 million square feet across nine U.S. markets. Key concentrations include Atlanta, Chicago, Dallas, Northern New Jersey/New York, and the Philadelphia/Southern New Jersey corridor, along with additional assets in Cincinnati, Columbus, Jacksonville, and Tampa Bay. The properties are leased to more than 75 tenants and feature a weighted average lease term of 2.9 years and 90% weighted average occupancy.
The refinancing expands Faropoint’s existing relationship with Capital One, which has supported multiple initiatives across the platform, including the recent Project Walk Off refinancing in Fund II, the company’s Industrial Sale-Leaseback acquisition facility, and the revolving credit facility in Industrial Value Fund IV.
The $325 million commitment includes an initial advance of $235 million, along with an additional $90 million available through an earnout and holdback structure tied to portfolio performance and tenant improvements.
Faropoint said Fund II’s financing program is designed to manage the entire lifecycle of the portfolio by combining flexible acquisition financing with permanent debt on stabilized pools to recapture deployment capacity and manage risk throughout the fund’s remaining hold period.
KEY QUOTES:
“This refinancing is an important step in optimizing the capital structure of Fund II. The flexibility of the structure, paired with the meaningful additional capacity built into the facility, gives the fund room to continue executing on its plan while strengthening our overall debt portfolio.”
Idan Tzur, Chief Financial Officer, Faropoint
“Capital One and Citizens have consistently been thoughtful and reliable partners across multiple transactions and fund vehicles. Closing this refinancing reflects both the strength of the Fund II portfolio and the depth of our relationship with these lenders. We appreciate their continued conviction in the platform and look forward to building on these partnerships.”
Mark DeCesare, Head of Corporate Finance, Faropoint
“We are pleased to expand our relationship with Faropoint through this refinancing. The Fund II portfolio reflects the disciplined sourcing and asset management we have come to expect from the Faropoint team, and we are excited to continue supporting the firm’s growth in the industrial sector.”
Seth Wiener, SVP And Head Of NY Region Production, Capital One
