Invesco Grabs Stake in Industrial Real Estate Firm Faropoint

Two significant forces in industrial real estate are partnering as they look to each grow their footprints in the market.

Invesco Real Estate acquired a minority stake in Faropoint, the Commercial Observer reported. The size of the stake has not been disclosed.

Faropoint CEO Adir Levitas told the publication that he hoped a relationship with a company as entrenched as Invesco would “supercharge” the New Jersey-based business, comparing Invesco to a “a big brother we can learn from.”

Bert Crouch, Invesco Real Estate’s North American lead, spoke of the firm’s desire to invest in a company that was “data driven” and had a proven track record.

Since its formation in 2012, Faropoint has become a major player in industrial real estate. In the past five years alone, Faropoint has acquired more than 400 warehouses and 20 million square feet, largely in last-mile facilities. Last month Faropoint spent $145 million to acquire two industrial campuses in Bergen County, New Jersey, spanning 770,000 square feet.

Levitas plans to use the Invesco partnership to expand westward, specifically in and around Los Angeles.

The Invesco deal might also help Faropoint expand globally. Levitas’ firm aims to scale up through Invesco’s lending platform, which originated more than $300 million in industrial deals in recent months.

Crouch, meanwhile, said the partnership with Faropoint would help Invesco in the last-mile and urban infill subsectors, where Faropoint has been focused.

Invesco is already a dominant company in the industrial sector with 70 million square feet in its portfolio. This month, it landed a tenant for its new industrial park in Morgan Hill, signing Pinnacle Exhibits to an 85,000-square-foot lease.

Industrial real estate is not as hot as it was during the first two years of the pandemic, but last-mile warehouses are still of keen interest to developers and landlords. The facilities are typically the last step for goods before they are delivered to consumers, which made them a priority for retailers looking to accelerate delivery times.

— Holden Walter-Warner