Faropoint Acquires 10-Building Last Mile Portfolio In Northern New Jersey From Kushner Cos. For $132.5M

Acquisition marks investment firm’s entrance into New York metropolitan area amid highly active 2021

HOBOKEN, N.J.--(BUSINESS WIRE)--Faropoint, a leading real estate investment firm focused on last-mile industrial properties in high population growth markets, today announced it has acquired a 10-building portfolio located throughout Northern New Jersey from Kushner Companies for $132.5 million, as part of the company’s continued national expansion.

“This acquisition is strategically important for Faropoint due to the portfolio’s proximity to the high barrier-to-entry, densely populated New York metro submarket,” said Ohad Porat, Chief Investment Officer at Faropoint. “We remain one of the most active investors in the industrial sector, and as we continue to expand geographically up the East Coast and across the nation, we are hyper-focused on investment opportunities in the New Jersey and New York metropolitan area.”

Faropoint is in expansion mode. The company has existing offices in Atlanta, Dallas, Philadelphia, Memphis, Cincinnati, and Hoboken, NJ, and opened new offices in Chicago and Miami this year. In 2021 alone, the company has acquired 148 buildings totaling nearly 9 million square feet in 85 separate transactions.

The properties in Faropoint’s newly acquired portfolio are located within in-fill areas throughout Bergen and Morris Counties and represent a combined 654,633 rental square feet. The portfolio is currently 98% leased to a variety of national and local tenants, spanning industries such as healthcare, biotechnology, distribution, and adjacent community service providers.

The portfolio is comprised of the following assets:

• 125 Algonquin Parkway, Whippany, NJ
• 145 Algonquin Parkway Whippany, NJ
• 156 Algonquin Parkway Whippany, NJ
• 30 Leslie Court Whippany, NJ
• 17-01 Pollitt Drive, Fair Lawn, NJ
• 19-05 Nevins Road, Fair Lawn NJ
• 128 Bauer Drive Oakland, NJ
• 40 Potash Road, Oakland, NJ
• 5 Thornton Road, Oakland, NJ
• 95 Bauer Drive, Oakland, NJ

As part of Faropoint’s national strategy to strengthen assets’ appeal to institutional investors, each building in the newly acquired portfolio will undergo a capital improvement program, which will include various upgrades such as re-painting, implementation of new LED lighting and sustainable features, and the replacement of roofs.

“The portfolio’s flexible design is ideally suited to accommodate a wide array of distribution and light industrial users in an area of Northern New Jersey where demand continues to outpace supply,” said Vadim Greenberg, Head of Acquisitions at Faropoint. “Faropoint has been watching and analyzing the Northern New Jersey industrial market for quite some time, and we believe that this market is well-positioned to capture future growth as some of the core locations in the New York metro area have experienced unprecedented rent growth during the last twelve months.”

Properties within the portfolio are predominantly located adjacent to routes servicing the Northeast Corridor (via interstates 80, 280, 287, and 95), offering transportation access to an area encompassing one-third of the North American population or over 130 million consumers within a single day’s drive.

“Working with Faropoint was a pleasure and incredibly efficient,” said Marc​ Duval, Managing Director at JLL Capital Markets, who represented the seller. “We were impressed with Faropoint’s execution capabilities and the speed at which they operate, which enabled the transaction to close within 39 days. We look forward to continuing to collaborate with Faropoint as they move forward with their ambitious national expansion strategy.”

JLL’s team representing the seller also included Senior Managing Director Jose Cruz, Managing Director Michael Oliver, Senior Director Jordan Avanzato and Director Nick Stefans.

Faropoint is active in the following markets, Dallas, Atlanta, New York metropolitan area, Philadelphia, Chicago, Miami, Tampa, Jacksonville, San Antonio, Memphis, Cincinnati, Houston and Columbus, and continues to expand its national footprint.

About Faropoint

Faropoint is a vertically integrated, data-driven real estate asset manager that leverages data and deep market relationships to achieve superior risk-adjusted returns. Faropoint targets inefficiencies in the marketplace that can be solved with technology and scaled to create meaningful positions using cutting-edge, proprietary, real estate underwriting and portfolio management methods. The company invests in markets with strong demographics and high construction barriers to entry, such as Atlanta, Dallas, Philadelphia, Chicago, Tampa, Miami, and northern New Jersey. As part of its strategy, Faropoint aggregates its individual industrial warehouse acquisitions into sought-after, institutional-quality portfolios. Faropoint currently owns and manages more than 20 million square feet of industrial assets.

For acquisition inquiries, contact Vadim Greenberg, Faropoint’s Head of Acquisitions at [e-mail]. For more information, visit faropoint.com.