Industrial property owner Faropoint has completed a $273 million portfolio refinancing for its second logistics fund, transitioning 61 industrial properties from acquisition financing to long-term debt as part of a strategy to optimize its capital structure.
The refinancing marks New Jersey-based Faropoint's third major debt transaction this month and demonstrates an active strategy to restructure acquisition-phase debt into permanent financing on stabilized assets.
Capital One and JPMorgan Chase led the bank syndicate, financing the collection of light industrial and infill properties that total 3.5 million square feet across eight major U.S. markets.
The firm structured the two-year, non-recourse loan with three 12-month extension options. CBRE arranged the transaction.
Faropoint acquired the properties between 2021 and 2022. The portfolio now stands at 96% leased, with a weighted-average lease term of 3.8 years, and serves 103 tenants across the Northeast, Southeast and Midwest, Faropoint said.
The firm previously closed a portfolio refinancing with Blackstone Mortgage for Industrial Value Fund III this month. In addition, it secured a $600 million KeyBank-led acquisition credit facility for Industrial Value Fund IV.
The debt optimization approach extends loan maturities, diversifies lender relationships and positions the fund to distribute capital to investors during its value realization phase, according to Faropoint.
"This $273 million refinancing represents a significant milestone for Fund II and underscores the strength of our portfolio," Idan Tzur, chief financial officer at Faropoint, said in a statement. "We've optimized our debt structure and positioned ourselves to return capital to our investors."
The transaction represents Faropoint's largest portfolio refinancing by asset count to date. The deal extends debt maturity through the remainder of Fund II's lifecycle while diversifying debt sources, according to the company.