Israeli Firm Faropoint Nabs Revolver for US Warehouse Investments

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Israeli investment firm Faropoint has sealed credit and subscription facilities from KeyBank Real Estate Capital and Citizens Bank for a new fund focused on U.S. last-mile industrial properties, Commercial Observer has learned.

The firm closed on an unsecured credit facility of $265 million with an option to extend it up to $550 million. It also landed a $75 million subscription facility structured against institutional investor commitments toward the fund.

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The facilities are aimed at helping Faropoint acquire an additional $1.8 billion of industrial real estate over the next two years.

“We continue to witness a sharp rise in demand for industrial real estate, especially within the last mile, and we are privileged to be well placed on the market to leverage this unprecedented growth,” Faropoint CEO Adir Levitas said in a statement. “E-commerce continues to play a primary role in reshaping the industrial real estate demand fundamentals.”

Since its founding in 2012, Faropoint has acquired more than 13 million square feet of last-mile warehouses in major metropolitan markets across the Southeast, Northeast, Midwest and Texas.

Its new facilities are co-led by KeyBank and Citizens Bank. The banks also played a strategic role leading a more than $200 million credit facility for Faropoint’s first Last-Mile Logistics Fund, which has acquired roughly 120 warehouses totaling more than 7 million square feet.

“We are proud to be able to lead these two meaningful credit facilities for Faropoint’s newest fund focused on the last-mile logistics and industrial sectors,” Joshua Mayers, senior vice president of KeyBank’s institutional real estate group, said in a statement. “We are excited to continue to build upon our relationship with the Faropoint team.”

Kay Finance’s Yair Tilson arranged the revolver on behalf of Faropoint. Great Neck, N.Y.-based Kay Finance is a boutique capital advisory firm specializing in debt and equity placements that has closed more than $1 billion in transactions.

“These unique facilities will ensure Faropoint’s ability to continue to scale their ever-growing industrial portfolio and truly become the gold standard of last-mile logistics,” Tilson said.