Faropoint’s Sale-Leaseback Strategy Starts Small For Big Returns

Faropoint is looking to do what few large investors will — buy individual warehouses direct from users. The industrial asset manager launched a $350M sale-leaseback fund dedicated to buying properties from tenants to lease back to them, giving tenants an easy way to secure the cash they need to keep going and allowing Faropoint to aggregate warehouse portfolios it can sell to larger investors.

So far, Faropoint’s fund has acquired or contracted about 1M SF that spans 12 fully occupied buildings across the Midwest and New Jersey. It plans to expand to the South, where preleasing activity is strong and the biggest pool of mega-box warehouse space is available, like in Texas and Georgia.

Faropoint
Ohad Porat | Chief Investment Officer

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