Faropoint announced it has completed a $273 million refinancing for a 61-asset portfolio of light and infill industrial properties totaling nearly 3.5 million square feet, marking its largest portfolio refinance to date by number of assets. The firm, which focuses on last-mile industrial properties in high population growth markets, said the financing proceeds came from a bank syndicate led by Capital One and J.P. Morgan for “Project Walk-Off,” a portfolio spanning eight major U.S. metros across the Northeast, Southeast, and Midwest.
The transaction follows Faropoint’s recently completed $340 million Fund III refinancing and a separate 46-asset refinance earlier in Fund III, as the company continues to shift stabilized assets from short-term acquisition facilities into longer-term, portfolio-level debt. Faropoint said Fund II is in a value-realization phase and that the refinancing is intended to optimize the capital structure of stabilized assets, extend debt maturities through the remainder of the fund life, diversify debt sources, and enhance distribution capacity.
Faropoint said the portfolio is currently 96% leased, with a weighted-average lease term of 3.8 years. The properties were acquired between 2021 and 2022 and have undergone capital investments driven by tenant activity and the firm’s value-add initiatives. The company described the debt as a two-year, non-recourse loan with three 12-month extension options. Faropoint said the refinancing was arranged by CBRE’s Tom Traynor, Tom Rugg, Mark Finan, and Henry Fenmore.
KEY QUOTES
“By executing this transaction on attractive terms, we’ve optimized our debt structure and positioned ourselves to return capital to our investors, a testament to the value creation we’ve achieved across this 61-property portfolio.” “This $273 million refinancing represents a significant milestone for Fund II and underscores the strength of our portfolio. By executing this transaction on attractive terms – our largest refinancing to date in Fund II – we believe we’ve optimized our debt structure and positioned ourselves to return capital to our investors, a testament to the value creation we’ve achieved across this 61-property portfolio.”
Idan Tzur, Chief Financial Officer, Faropoint
“This transaction continues to strengthen our long-term partnerships with Capital One and J.P. Morgan, relationships we’ve built across multiple funds and numerous transactions over the years. Their confidence in our platform and ability to execute complex portfolio financings reflects the institutional quality of our operations. We look forward to continuing to grow alongside these key lending partners as we scale our business.”
Mark DeCesare, Head of Corporate Finance, Faropoint
“We’re pleased to continue our partnership with Faropoint on this significant portfolio financing. These accretive financing partnerships align with our strategy of supporting experienced industrial sponsors.”
Seth Wiener, SVP, CRE NY Team Lead, Capital One
