New Jersey-based real estate investment firm Faropoint continued its expansion in Texas and the growth of its national footprint with the purchase of six warehouses in Dallas during May. The Dallas-Fort Worth metroplex continues to be a top target for industrial activity in terms of occupied business space, especially for companies that work in e-commerce and handle online distribution.
With a focus on last-mile industrial properties in high population growth markets, Faropoint acquired the warehouses for a combined $59 million, the six properties represent nearly 550,000 square feet of warehouse space in the Dallas-Fort Worth metroplex.
“We’re seeing tremendous investment opportunities in Texas right now,” Faropoint Senior Vice President and Texas Market Leader Jacob Rich said in a statement.
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“Even amid rising interest rates, deal flow remains high due to soaring demand and a lack of middle-market warehouse supply,’’ he continued. “Our deep relationships throughout the submarkets and superior data-driven insights give us an edge when competing for deals. As a tech-enabled asset manager, our partners have confidence in our quick response time and certainty to close.”
Several e-commerce and last-mile distribution users are increasingly demanding space in the Dallas-Fort Worth area, due to its growth since 2018. Dallas-based firm Transwestern recently reported that the Dallas-Fort Worth should carry over this robust performance in 2022, and smashed records in the fourth quarter of 2021 with demand reaching an all-time high of 41.7 million square feet and vacancy rates being driven to historic lows.
Faropoint acquired the six DFW properties from private owner-investors, represented by Cushman & Wakefield, Citadel Partners, Finial Group, Mercer Company and Stream Realty Partners. Each of the properties are fully leased and occupied by a diverse array of tenants, and they include the following:
- A 245,300-square-foot multi-tenant distribution center located at 1709 1-45 South;
- A 57,028-square-foot corporate use sale-leaseback located at 3857 Miller Park;
- A 48,750-square-foot multi-tenant front load industrial warehouse located at 10501 King William;
- A 99,750-square-foot standalone single tenant warehouse located at 11839 Shiloh Road;
- A 40,116-square-foot single-tenant warehouse located at 2445 Santa Ana;
- A 56,841-square-foot single tenant warehouse located at 1721 Susan Drive
“We will continue to pursue deals in Dallas as we expand our footprint across Texas and the U.S. following a record-breaking year of activity in 2021, during which time we acquired 148 buildings totaling more than 9 million square feet in 85 separate transactions,” Vadim Greenberg, head of acquisitions at Faropoint, said in a statement.
“We look forward to doubling that deal volume by the end of 2022 and our ability to do so will be directly correlated to our quick response time when an opportunity presents itself,” he said.