Industrial Deals Race to the Finish Line

As the year comes to a close, buyers and sellers are rushing to finalize transactions. Nowhere is that truer than the active industrial market. 

Within days, two industrial portfolios have traded hands in separate deals.

Faropoint, a real estate investment firm focused on last-mile industrial properties in high population growth markets, has acquired a 10-building portfolio located throughout Northern New Jersey from Kushner Cos. for $132.5 million.

In another transaction, McDonald Development has sold its Southeast US industrial portfolio, a collection of 14 buildings spanning across five master-planned industrial parks, for $395.5 million. 

Totaling 2.7 million square feet, this portfolio offering consists primarily of multi-tenant buildings occupied by 38 tenants. Each of the parks are located in infill markets. 

Cushman & Wakefield’s Stewart Calhoun and Casey Masters represented the seller in the transaction.

Faropoint In Expansion Mode

For Faropoint, its acquisition is strategically important due to the portfolio’s proximity to the high barrier-to-entry, densely populated New York metro submarket  Ohad Porat, Chief Investment Officer at Faropoint, said in prepared remarks. “We remain one of the most active investors in the industrial sector, and as we continue to expand geographically up the East Coast and across the nation, we are hyper-focused on investment opportunities in the New Jersey and New York metropolitan area.”

Faropoint is in expansion mode, opening new offices in Chicago and Miami this year. In 2021 alone, the company acquired 148 buildings totaling nearly 9 million square feet in 85 separate transactions.

The properties in Faropoint’s newly acquired portfolio are located within in-fill areas throughout Bergen and Morris Counties and represent a combined 654,633 rental square feet. The portfolio is currently 98% leased to a variety of national and local tenants.

JLL’s Marc​ Duval, Jose Cruz, Michael Oliver, Jordan Avanzato and Nick Stefans represented the seller in the transaction.