Faropoint has secured a $325 million refinancing for a portfolio of last-mile industrial properties, extending a run of debt deals as the investor reworks capital across its growing logistics platform.
The financing — arranged with Capital One and Citizens Bank — is the firm's second major refinancing tied to its Faropoint Logistic Fund II in five months, underscoring how industrial owners are leaning on flexible, staged debt structures to manage shorter lease terms, reposition assets and recycle capital in a still-evolving market.
New Jersey-based Faropoint kicked off the year with a $273 million refinancing, also through Capital One.
The latest non-recourse, floating-rate loan carries a one-year initial term with four 1-year extension options, providing the fund with flexibility to align financing duration with its broader portfolio strategy, Faropoint said in announcing the deal.
The $325 million commitment includes an initial advance of $235 million, with an additional $90 million available through an earnout and holdback structure tied to portfolio performance and tenant improvements.
Capital One and Citizens Bank financed the collection of 62 industrial buildings totaling 3.3 million square feet across nine U.S. markets, with concentrations in Atlanta, Chicago, Dallas, Northern New Jersey-New York and the Philadelphia-Southern New Jersey corridor. Additional assets are located in Cincinnati and Columbus, Ohio, and in Jacksonville and Tampa Bay, Florida.
Among the properties were 3113 Glenfield Ave. and 3638-4000 Dan Morton Drive in Dallas, according to public record filings.
The portfolio is leased to more than 75 tenants with a weighted average lease term of 2.9 years and 90% weighted average occupancy.
"This refinancing is an important step in optimizing the capital structure of Fund II," Idan Tzur, chief financial officer at Faropoint, said in a statement. "The flexibility of the structure, paired with the meaningful additional capacity built into the facility, gives the fund room to continue executing on its plan while strengthening our overall debt portfolio."