Truist, Capital One lend Faropoint $474M on 85 industrial buildings

Faropoint refinanced 85 last-mile industrial buildings with $474 million of debt from Truist Bank and Capital One, a portfolio spread across 12 states, according to Commercial Observer's Nov. 9 report. The buildings sit in the New Jersey firm's Industrial Value Fund III, and the proceeds repay acquisition debt and fund future distributions.

Total commitments are $574 million, including an $84 million reserve that is released through an earn-out if the portfolio's net operating income rises over the loan term. The interest rate and the income threshold were not disclosed.

For investors in Industrial Value Fund III, the earn-out changes what a distribution is: part can come from the $84 million reserve rather than rent, released only if portfolio income rises. The loan balance is not fixed at closing; it can grow with income over the term. The key question for a fund buyer is how much of any distribution is funded by the reserve.

"The earn-out is what sets this financing apart," Faropoint's head of corporate finance Mark DeCesare said. He said the structure gives Fund III flexibility to fund future distributions through the earn-out and to add properties through an accordion.

Faropoint has secured $2.2 billion in financing for Fund III since its June 2024 launch. The refinanced assets are concentrated near Chicago, Philadelphia and New York City.

Truist is a repeat lender: it led a $340 million refinancing in September 2025 and co-arranged the firm's $600 million Fund IV acquisition credit facility in January 2026. Capital One has financed two Faropoint funds in recent years.