Faropoint announced that it has closed a $340 million refinancing package provided by Truist Bank and U.S. Bank, marking the most significant single transaction in the company’s history. The financing, which includes 46 assets in its Industrial Value Fund III, follows the firm’s recent $328 million portfolio acquisition from Mapletree, previously its largest acquisition to date.
The refinancing encompasses 49 industrial buildings, totaling 3.7 million square feet, across 12 U.S. markets. This move expands the company’s access to diverse debt sources, strengthens its risk management approach, and frees capital for continued expansion. Faropoint stated that the transaction is intended to optimize its overall capital structure and support future acquisition momentum within Fund III.
The firm has designed this refinancing as part of a broader strategy to transition short-term acquisition financing into longer-term debt secured against stabilized asset portfolios. This model is designed to enhance cash flow visibility and establish a consistent acquisition capacity as Faropoint scales its holdings in key growth markets.
The transaction also marks the beginning of an anticipated ongoing strategic financing partnership with Truist Bank and U.S. Bank. The additional proceeds secured through this transaction are expected to be redeployed to advance the company’s acquisition pipeline as Fund III moves toward full deployment.
Faropoint recently launched Industrial Value Fund IV with a $1 billion target, building on sustained demand for last-mile logistics properties, particularly in high-growth population centers. The company currently operates in 16 U.S. markets, utilizing a vertically integrated platform that leverages data, acquisition infrastructure, and longstanding market relationships.
KEY QUOTES
“This $340 million refinancing represents a watershed moment for Fund III and demonstrates the strength of our portfolio construction.”
Idan Tzur, Chief Financial Officer, Faropoint
“By securing favorable terms on our largest refinancing to date, we’re not only seeking to optimize our capital structure but also creating capacity for continued growth. The proceeds from this transaction will fuel our acquisition pipeline as we work toward Fund III’s full deployment.”
Idan Tzur, Chief Financial Officer, Faropoint
“This refinancing marks several important milestones. Not only is this refinancing the largest transaction in our company’s growing history, but also it represents the launch of what we hope is a long and strategic partnership with both Truist & U.S. Bank. The substantial additional proceeds demonstrate the realization of our value-creation strategy, unlocking capital that will be redeployed to continue scaling the portfolio.”
Mark DeCesare, Head of Corporate Finance, Faropoint
“This transaction reflects Truist’s collaborative approach to working with sponsors on mission critical financings. By providing tailored and flexible capital solutions, we’re helping clients optimize their portfolios so they can continue investing in their growth.”
Alex Rownd, Director, Real Estate Corporate Banking, Truist
