Faropoint picks up Kushner’s NJ industrial portfolio for $133M

Collection of last-mile facilities span 654,000 square feet

Tri-State /
Dec.December 21, 2021 05:11 PM

Adir Levitas, chief executive officer, Faropoint, in front of three of the acquired properties from the industrial portfolio (Faropoint, LoopNet, iStock)

New Jersey’s industrial market has notched a flurry of recent deals, the latest of which saw the Kushner Companies trade a 10-building industrial portfolio.

Industrial investment firm Faropoint acquired the properties in infill areas across Bergen and Morris counties for $132.5 million, the Commercial Observer reported. The portfolio includes more than 654,000 square feet and is a combined 98 percent leased.

Four of the properties are located in Whippany, including three on Algonquin Parkway. Four of the properties are located in Oakland, according to the Observer, while two of the properties are in Fair Lawn. The portfolio consists entirely of last-mile facilities.

The acquisitions were financed through a revolving credit facility issued by Key Bank. The assets will receive capital improvements, including LED lighting and roof replacements.

A JLL Capital Markets team including Marc Duval and Jose Cruz represented Kushner in the sale.

Faropoint CIO Ohad Porat told the Observer the deal was “strategically important” because of “the portfolio’s proximity to the high barrier-to-entry, densely populated New York metro submarket.”

The investment firm has been on a purchase tear this year, purchasing 148 buildings to add almost 9 million square feet to its portfolio.

Faropoint is reportedly looking to expand in the New York City and tri-state market after a summer of acquisitions in the Chicago area. The firm bought a 43,000-square-foot industrial facility in Mount Prospect, Illinois, after closing on four transactions totaling nearly 900,000 square feet in July and August.

Everyone appears interested in taking a bite out of New Jersey industrial. EverWest Realty Partners recently acquired a three-building portfolio in Moonachie for about $65.9 million. The 190,000-square-foot portfolio is in the Meadowlands, a high-demand infill location in northern New Jersey.

Warehouse space in the state has become nearly impossible to find due to the high demand. A report from JLL released last month showed the vacancy rate for Class A properties in the state to be only 0.2 percent.

[CO] — Holden Walter-Warner





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