Faropoint, a New Jersey-based real estate investment manager focused on last-mile logistics properties, has closed a 474 million US dollar refinancing for a portfolio of 85 industrial buildings in the United States. Debt capital is being provided by Truist Bank and Capital One.
The loan serves to take out existing acquisition liabilities and is designed to secure future distributions. Total lender commitments amount to up to 574 million US dollars. This includes an earn-out reserve of 84 million US dollars, which can be drawn down if the portfolio's net operating income increases accordingly over the term of the loan.
Structured flexibility for Industrial Value Fund III
Mark DeCesare, Head of Corporate Finance at Faropoint, emphasised that the earn-out mechanism in particular distinguishes this financing. The chosen structure gives Industrial Value Fund III considerable operational flexibility to execute the business plan, from future distributions to the addition of further assets via an accordion clause. No broker was involved in the transaction.
The 85 assets form part of Faropoint Industrial Value Fund III, which has raised a total of 2.2 billion US dollars in financing since its inception in June 2024. The properties are spread across twelve US states, with key concentrations in the metropolitan areas of Chicago, Philadelphia, and New York City.
Established partnership with the lenders
A long-standing business relationship already exists between Truist and Faropoint. Both institutions completed a 340 million US dollar refinancing in September 2025. In addition, Truist acted as co-arranger of a 600 million US dollar credit facility in January 2026 for acquisitions by Fund IV. Alex Rownd, Director of Real Estate Corporate Banking at Truist, pointed to the close partnership built across multiple funds.
Capital One has also supported two of the investment house's funds in recent years. Seth Wiener, Head of Regional Production in New York at Capital One, highlighted that Faropoint's track record makes the firm a partner with whom they look forward to deepening their cooperation further in the future.
