As Faropoint is looking to shore up capital for the industrial sector, it has struck a $328 million deal to buy a portfolio that spans 1.8 million square feet from Mapletree Investments.
The assets break down to 30 shallow-bay warehouses. They are located in several states, including Georgia, New Jersey, Florida, Texas and Pennsylvania. According to Faropoint, this marks the largest purchase it's made in 13 years, which is when the real estate investment firm was founded.
The move comes just about a week after Faropoint announced its Industrial Value Fund IV, aiming to raise $1 billion and target regions surrounded by scarce supply, with in-place rents below the market. At the time, Teacher Retirement System of Texas had already committed $225 million to the pool. It's unclear if the 30 shallow bay warehouses lie directly within Faropoint's Fund IV strategy.
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“This portfolio is a strategic addition to our platform and reinforces Faropoint’s conviction in the long-term fundamentals of infill industrial real estate,” Ohad Porat, chief investment officer at Faropoint, said in a statement.
“It advances the scale and discipline we apply to our investment strategy as we continue growing across key U.S. logistics corridors.”
According to Faropoint, it has acquired over 500 warehouses in 16 markets since 2012, representing more $3.5 billion in capital. Additionally, the firm has raised $916 million through Fund III, which is continuing to target select urban logistics opportunities.
For Mapletree, the deal marks the New York-based firm's first major warehouse sale on record. Currently, Mapletree operates more than 70 million square feet of U.S. industrial properties.
As for industrial as a whole, smaller markets are expected to outperform in terms of rent growth through 2029 in the asset class, according to a recent report from CBRE. This can be attributed to construction being more stable compared with a surge seen in other markets. The top 15 projected rent growth regions are expected to increase by 5%, while the bottom 15 are expected to see gains of less than 2%, CBRE predicted.
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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.
