Invesco Real Estate (IVZ) concluded a strategic investment with faro point It aims to expand its industrial portfolio to more last-mile warehousing facilities.
The transaction, announced Wednesday, includes Invesco Real Estate acquiring an undisclosed minority stake in the FaroPoints platform. This transaction was led by andrew laneSenior Director Invesco Real Estate.
Faropoint CEO Adir Levitas The industrial investment firm first connected with Lane in early 2022 when it was looking for a strategic partner to further expand its 10-year-old company. At the first meeting, the commercial real estate market was in a completely different situation, with borrowing terms close to zero, but through future volatility the relationship grew stronger and the strategic investment agreed between the two companies in mid-November was the most important. The high tide has been reached.
Levitas, who founded FaroPoint in 2012, said the opportunity to partner with an investment management platform like Invesco, with which he has had a relationship for more than 40 years, was particularly appealing.
“Our relationship with them has withstood the test of volatile times that have changed our business plans time and time again,” Levitas told CO.
“We hope to strengthen us in all directions, from experienced decision-making to new lines of business and relationships with LPs and others,” Levitas added. “He’s like a big brother for us to learn from.”
Since 2018, FaroPoint has acquired more than 400 warehouses and 20 million square feet of last-mile industrial land. The New Jersey-based company is primarily focused on growth markets east of the Mississippi River, along with Texas, and Levitas hopes the partnership with Invesco will help. Faro Point will expand further west, specifically into the Los Angeles market.
Invesco has been active in the industrial sector for many years and owns approximately 70 million square feet of warehouse space. The new partnership with FaroPoint will help the company further expand into last-mile and urban infill facilities, given the company’s expertise in these areas. bart crouchHead of North America for Invesco Real Estate.
“We wanted to partner with a company that had a large team, a differentiated strategy, was data-driven and technology-enabled, and had a track record to back it up. They checked the boxes,” Crouch told CO. Rather than just doing a programmatic venture, we can work within the platform, which further aligns us with their platform, their team, their capital, and all aspects of their broader strategic landscape going forward. can. ”
Crouch said he wants to help Faropoint expand into new markets on a global level. He added that Faropoint also has the potential to expand its business through Invesco’s active lending platform. The platform has originated over $300 million in industrial transactions across a variety of credit strategies in the past few months.
While the entire industrial sector has cooled since the breakneck growth experienced during the height of the COVID-19 pandemic, last-mile warehouses in urban areas that are not tied to big-box stores are in short supply. Levitas emphasized that there is still a huge demand for these products. He noted that more than 75 percent of the tenants in Faro Point’s portfolio were established before 2000 and that he has little influence.
“Urban logistics is less about e-commerce and global supply chains than big box,” Levitas said. “The reality is, the customers are different, the applications are different, the businesses are different, the demands are different.”
Andrew Cohen can be contacted at: acoen@commercialobserver.com