Faropoint launches $300m Industrial SLB Fund

Faropoint, a tech-enabled U.S. industrial real estate investment manager, has launched its $300 million target Industrial Sale-Leaseback (SLB) Fund.

The launch follows the recent final close of Faropoint’s Industrial Value Fund III at $915 million, exceeding its $750 million target and attracting institutions across North America, Europe, and the Middle East.

The Industrial SLB Fund, which secured $170 million in committed capital during its initial close in August 2024, is poised to capitalize on the debt gap of local and regional U.S. banks as they strive to reduce commercial real estate exposure. By targeting strategically located, functional infill industrial properties ranging from 20,000 to 200,000 square feet, with an average lease term of 10 years, the fund is positioned to meet businesses’ liquidity needs through off-market transactions. This approach ensures the preservation and enhancement of residual value, setting it apart from typical SLB deals.