Partnership signals continued confidence in the last-mile industrial sector and reinforces Faropoint’s data-driven approach to urban infill industrial
Faropoint, a leading infill industrial investment manager, announced today it has closed on a strategic investment from Invesco Real Estate, a global real estate investment manager, who acquired a minority stake in Faropoint’s Platform. The transaction was structured by Invesco Real Estate’s Platform Investments team, led by Andrew Lane, Senior Director.
Faropoint has become one of the most active buyers of small bay warehouses in the U.S. by leveraging its vertically integrated capabilities and proprietary technology. Since 2018, Faropoint has acquired more than 400 warehouses and 20 million square feet of last-mile industrial properties in high-growth markets. Through its sourcing platform, Faropoint logs $5-7 billion of quarterly deal flow granting the firm unique insight into the market dynamics and trends.
“We are excited for this strategic partnership with Invesco Real Estate, whose breadth of experience and global reach can help us grow our business and amplify our impact,” said Adir Levitas, CEO and Founder of Faropoint.
“The opportunities for our two companies to do great things together are endless,” said Ohad Porat, CIO at Faropoint. “The partnership with Invesco Real Estate is a very natural one, as we’ve been working closely together and trading insights for some time. We look forward to this exciting collaboration.”
“This investment strengthens our commitment to optimizing our execution across highly fragmented markets such as infill industrial real estate by leveraging technology to efficiently identify and accurately underwrite investment opportunities nationally,” said Bert Crouch, Head of North America at Invesco Real Estate. “As a part of our broader strategic initiative to vertically integrate operating platforms across our highest conviction sectors, we believe this investment into Faropoint will allow us to capitalize on secular tailwinds affecting this compelling sub-sector.”
Against the backdrop of a tightened macroeconomic landscape, the last-mile sector continues to display resiliency due to its strong fundamentals, including low vacancy rates and construction starts. Last month, Faropoint acquired two industrial parks in the competitive North Bergen County, New Jersey submarket for a combined $144.5 million.
Faropoint was represented by Eastdil Secured and Adler Stachenfeld LLP. Berkshire Global Advisers and Greenberg Traurig represented Invesco Real Estate.
Faropoint is a vertically integrated, tech-enabled real estate investment manager with 120 employees that leverages data and deep market relationships to achieve superior risk-adjusted returns. Faropoint targets inefficiencies in the marketplace that can be solved with local real estate expertise and technology. The company invests in 15 markets across the East Coast, Midwest, Southwest and Texas, each with strong demographics and high construction barriers to entry. Faropoint recently sold its Logistic Fund I, proving its strategy on a large scale. For acquisition inquiries and more information, visit faropoint.com.
About Invesco Real Estate
Invesco Real Estate is a global leader in the real estate investment management business with $91.1 billion in real estate assets under management, 586 employees and 21 regional offices across the U.S., Europe and Asia (as of March 31, 2023). Invesco Real Estate was established in 1983 and today invests across the risk return spectrum, from core to opportunistic; in equity and debt; listed and direct; locally and globally. Invesco Real Estate is a business name of Invesco Advisers, Inc., an indirect, wholly owned subsidiary of Invesco Ltd. Invesco Ltd (NYSE: IVZ). Invesco Ltd is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.