Faropoint is looking to raise $1 billion under its newly launched Industrial Value Fund IV, with Teacher Retirement System of Texas already committing $225 million to the pool.
Once deployed, the capital will target logistics properties in primary, gateway and secondary national regions surrounded by scarce supply, with in-place rents below the market. Also, the strategy will seek developments "where rental rates have increased enough to warrant new construction," according to a statement by Faropoint.
The targeted total property size will range between 20,000 and 100,000 square feet, with suites between 20,000 and 40,000 square feet.
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Fund IV projects to assemble a portfolio with roughly 200-250 properties.
To identify opportunities, the investment firm plans to utilize its pipeline management system and proprietary sourcing tool, FarOS, along with its artificial intelligence asset evaluator, REXy.
“Fund IV represents our ongoing commitment to pairing local market expertise with cutting-edge technology to drive value while attempting to minimize downside risk,” Adir Levitas, CEO of Faropoint, said.
“With access to over $30–40 billion in deal flow annually through FarOS and market insight driven by REXy, we believe we are uniquely positioned to construct diversified portfolios that reflect secular urban logistics trends and dynamic tenant needs.”
Faropoint's previous Fund III raised $916 million, more than its initial $750 million target. According to the company, that fund will continue deploying capital on select urban logistics opportunities and use its "pure play strategy." Already, Fund III has invested in 200 properties, accounting for $1.8 billion in gross asset value.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
