After launching their Chicago platform in late April of 2021, Faropoint has just announced the closing of 11 deals in just under six months in the Chicago market. The transactions range in size from as small as 13,000 SF for single-asset transactions up to 757,017 SF, in the case of a multi-building portfolio. Faropoint has been successful in acquiring both on-market and off-market transactions. At the end of 2021, Faropoint’s Chicago portfolio totaled approximately 1.3 million square-feet across 18 buildings. The properties are located throughout the Chicago market with the vast majority sitting in and around the O’Hare submarket.
“The need for industrial buildings has been on the rise for more than a year. We are now seeing several of our small tenants finding growth opportunities and feeling optimistic about the future, said Ahmed Chapsi, Senior Associate of Asset Management for Faropoint. “Faropoint is especially focused on helping small tenants grow as they are the backbone of our last mile ecosystem. Our ability to offer tenants additional resources compared to a traditional landlord has helped us attract and close on many sale-lease back transactions. We will continue with this hands-on approach in 2022 to further strengthen our tenant relationships,” continued Chapsi.
“We feel we have been able to successfully penetrate the Chicago market as a direct result of our relationships with the brokerage community. We rely heavily on their local market expertise, and knowledge of potential opportunities for acquisitions,” said Jordan Kovalsky, Senior Vice President of Midwest Markets for Faropoint. “Faropoint is targeting distribution and light industrial assets within dense infill submarkets. As construction costs rise, we see an increasing value for second and third generation properties,” continued Kovalsky.
Faropoint’s Midwest office is based in Chicago with a satellite office in Cincinnati. Faropoint’s Cincinnati portfolio totals 1.3 million SF across 12 assets and Faropoint has recently closed on its first four buildings in Columbus, where they plan to expand further in 2022. With the increased activity over the last six months, the Midwest team has hired an additional five teammates to focus on both acquisitions and asset management.
“The industrial market has a lot of momentum behind it. We are bullish on the Midwest markets and their opportunity for growth given the strong access to transportation and large population centers. Faropoint will continue to be an active player in 2022,” continued Kovalsky.