Blackstone Provides $82M Refi for 16 Industrial Properties

Blackstone has arranged a $81.5 million loan for Faropoint to refinance 16 industrial properties.

The assets are located in Faropoint’s Industrial Value Fund III, which raised $915 million after closing in June. The industrial properties are located in six undisclosed markets and span 1.2 million square feet.

The refinancing allows the real estate manager’s debt sources to diversify while giving it flexibility to make acquisitions by freeing up capital.

According to a statement by Faropoint, this move is in line with its strategy, which uses a purchased facility to “streamline acquisitions and aggregate properties.” And once a portfolio becomes stabilized like Value Fund III, the Hoboken-based firm refinances it into permanent debt to create “additional dry powder in the acquisition facility,” said Faropoint.

“We’re fortifying our financial agility and readiness to navigate dynamic market shifts. Faropoint’s use of proprietary in-house technology, coupled with our on-the-ground acquisition strategy to aggregate attractive investment opportunities, has allowed us to close on a high volume of last-mile industrial opportunities,” Idan Tzur, chief financial officer of Faropoint said.

“This transaction with Blackstone not only enhances our financial flexibility but also validates our approach in the competitive industrial real estate market.”

In September, the company was targeting to raise $300 million after announcing the launch of the Industrial Sale-Leaseback Fund. The fund, which is targeting off-market deals for infill industrial assets, has acquired 12 contract properties, spanning roughly one million square feet collectively. They are located across  Atlanta, Chicago, Charlotte, Northern New Jersey, and Long Island. Already, Faropoint has secured $170 million from the fund’s initial close.

Over the past six years, Faropoint has acquired more than 80 sale-leaseback properties.

Currently, the industrial-focused firm operates in 16 markets across the nation and manages more than $2.5 billion in assets. Since its founding in 2012, it has added more than 400 warehouses to its portfolio.

Eastdil Secured brokered the loan for Faropoint.