Faropoint closes Urban Industrial Value Fund III with $915 million

Hoboken-based industrial real estate investment manager Faropoint on Thursday announced the final closing of its flagship Industrial Value Fund III with commitments of $915 million, well above its original target of $750 million.

The fundraising follows the previous successes of Faropoint’s Value Funds I and II, which pursued the strategy of bundling institutionally inaccessible assets to achieve a premium through a portfolio sale.

To date, Fund III has acquired over 80 urban industrial warehouses in 12 U.S. markets and intends to acquire more than 200 warehouses during its life. With transactions averaging under $10 million, the Fund diversifies its assets across different markets, sectors, tenants, vintages and construction types to optimize portfolio composition.

“Exceeding our funding target for Industrial Value Fund III is a testament to our investors’ confidence in our strategy and execution capabilities,” said Adir Levitas, CEO of Faropoint. “Our focus on urban logistics and our ability to capitalize on off-market opportunities, combined with our advanced data and machine learning tools, puts us in a unique position to optimize risk-adjusted returns.”

“Despite a challenging fundraising environment, the successful closing of Fund III represents a significant milestone for Faropoint,” said Raz Rahamim, Global Head of Capital Development and Investor Relations at Faropoint. “Our unique strategy and robust asset class have attracted significant investor commitments from multiple continents, validating our investment approach and operational expertise. This success is a testament to the dedication and hard work of our exceptional team, whose efforts have been instrumental in our success. We look forward to building on this momentum and delivering exceptional results to our investors.”

The fund has secured investment from leading institutions across North America, Europe and the Middle East, including government pension funds and insurance companies, underscoring Faropoint’s strong market reputation and track record. Threadmark Partners Ltd. supported the fundraising as global placement agent.