Faropoint Launches $300M Industrial SLB Fund
Faropoint has launched an Industrial Sale-Leaseback (SLB) Fund targeting $300 million, following the recent final close of the firm’s $915 million Industrial Value Fund III, which exceeded its $750 million target.
The Industrial SLB Fund, which raised $170 million in committed capital during its initial close in August 2024, aims to capitalize on local and regional US banks’ debt gap as they seek to minimize commercial real estate exposure, according to the firm.
The fund will focus on strategically located, functional infill industrial properties ranging from 20,000 to 200,000 square feet, with an average lease duration of 10 years. The fund has already acquired and placed under contract 12 fully occupied buildings totaling approximately 1 million square feet in Long Island, Atlanta, Chicago, Charlotte, and Northern New Jersey.
“One of the challenges with traditional SLB structures is the potential loss of residual value as the lease runs out. By targeting well-located, highly functional industrial assets in core urban markets we ensure that these properties retain long-term value,” said Adir Levitas, CEO of Faropoint.
Since 2018, the Hoboken, NJ-based firm has acquired more than 80 sale-leaseback buildings, totaling approximately five million square feet, all without any defaults. It has acquired over 400 warehouses since inception in 2012 and manages more than $2.5 billion in assets.