Faropoint has completed a $340 million refinancing for 46 assets within its Industrial Value Fund III, marking the largest financing transaction in the company’s history. Truist Bank and U.S. Bank provided the loan and follow the firm’s $328 million acquisition of a portfolio from Mapletree earlier this year, which remains its largest acquisition to date.
The financing covers 49 industrial buildings totaling approximately 3.7 million square feet across 12 major markets. The structure is intended to optimize Faropoint’s capital position by transitioning from short-term acquisition loans to long-term financing against stabilized assets. The refinancing also expands the company’s available capital for additional industrial acquisitions as it continues building out its portfolio.
The transaction represents a key step in Faropoint’s strategy of aggregating last-mile industrial properties in high-growth population centers, while strengthening risk management and enhancing long-term cash flow stability. It also introduces and strengthens lending relationships with both Truist and U.S. Bank.
The deal aligns with the firm’s financing approach, which involves using flexible acquisition credit facilities to efficiently assemble asset pools before refinancing into longer-term debt, thereby freeing capacity for continued expansion. Faropoint recently launched Industrial Value Fund IV, targeting $1 billion, and continues its focus on industrial logistics.
Faropoint operates in 16 U.S. markets and has acquired more than 500 warehouse properties since 2012, representing more than $3.5 billion in total industrial real estate assets.
KEY QUOTES:
“This $340 million refinancing represents a watershed moment for Fund III and demonstrates the strength of our portfolio construction. 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
