Faropoint, an Israeli real estate company that first entered the Philadelphia market a year ago, has dropped another $75 million to add 19 industrial buildings totaling 904,000 square feet to its growing portfolio of last-mile distribution centers throughout the region.
The company last year spent more than $50 million to buy 11 industrial properties between Southeastern Pennsylvania and South Jersey as part of a strategy to amass these industrial buildings here and in other markets across the country. Since entering the Philadelphia market in September 2020, Faropoint has spent nearly $130 million buying 1.53 million square feet.
The most recent spending spree started in May and has continued since.
“The biggest run has been in the last three months and we have five closings in September,” said Ian Murphy, who oversees asset management at Faropoint. “We would like to triple the amount of buildings we have if not have five times the amount, but it’s getting more difficult. Industrial is so hot.”
As with so many other investors these days, Faropoint is chasing buildings close to densely populated areas that can serve as last-mile distribution centers. The company most often buys Class B infill buildings that were built between the early 1970s and the early 2000s and are fully occupied. Deal size ranges from $5 million to $20 million.
The company is able to stay competitive by trying to execute off-market deals and completing transactions in just over a month, Murphy said. It typically takes 30 days to complete due diligence and another 15 days to close. The company also is willing to spend up.
*Article courtesy of Philadelphia Business Journal
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