KeyBank Provides $200M Revolver for Faropoint Industrial Buys

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Faropoint has secured a $200 million revolving credit facility from KeyBank Real Estate Capital, Commercial Observer has learned. 

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Kay Finance’s Yair Tilson secured the revolver on behalf of the borrower. 

Founded in 2012, Israel-based Faropoint is an industrial investment firm focused on value-add opportunities in the Southeast, Mid-Atlantic, and Midwest regions of the U.S. With a specific concentration on warehouses in infill locations, Faropoint’s new revolving credit facility coincides with the launch of its Last-Mile Logistics Fund, giving the firm speed of execution and added efficiency in closing new deals.

“The facility gives us a competitive advantage in the market as we can move fast on assets that meet the pre-approved terms,” Adir Levitas, CEO of Faropoint, said. “The facility is fully flexible so we can deleverage if needed, for instance when being more conservative in COVID.”

Faropoint intends to utilize similar credit facilities in its next fund, which will also focus on last-mile facilities but with $700 million in acquisitions as a target.

Great Neck, N.Y.-based Kay Finance is a boutique capital advisory firm specializing in debt and equity placement. To date, the firm has closed more than $1 billion in transactions, priding itself of its creation of tailor-made debt and equity solutions for its clients. 

“We are extremely thrilled with the outcome of this transaction,” Tilson said of the Faropoint deal. “We continue to see a growing interest for these type of lending facilities, which have proven to be a huge added-value, especially in today’s current environment.”