Faropoint Launches $1B Fund To Target Supply-Constrained Industrial Opportunities

Faropoint has launched its Industrial Value Fund IV, aiming to raise $1 billion to invest in logistics real estate across key U.S. markets.

The Teacher Retirement System of Texas has already pledged $225 million toward the fund.

The fund’s strategy will focus on acquiring logistics assets in primary, gateway, and select secondary markets where supply is limited and current in-place rents are below market rates. It will also pursue new development opportunities in areas where rising rental rates support the economics of ground-up construction.

Faropoint is targeting assets ranging from 20,000 to 100,000 square feet, with individual suites typically between 20,000 and 40,000 square feet. Fund IV aims to assemble a portfolio of approximately 200 to 250 properties.

To source and evaluate deals, Faropoint will leverage its proprietary FarOS platform, a pipeline management and sourcing tool, along with REXy, its AI-powered asset evaluation system.

“Fund IV represents our ongoing commitment to combining local market expertise with advanced technology to generate value while managing risk,” said Adir Levitas, CEO of Faropoint. “With access to $30–40 billion in annual deal flow through FarOS and analytics powered by REXy, we believe we’re uniquely positioned to build diversified portfolios aligned with long-term trends in urban logistics and evolving tenant demand.”

Fund IV follows the success of Industrial Value Fund III, which raised $916 million, surpassing its original $750 million goal. Fund III continues to deploy capital in urban logistics through Faropoint’s “pure play” strategy. To date, it has acquired 200 properties with a total gross asset value of $1.8 billion.

Source: GlobeSt.