Faropoint Expands with First Los Angeles Industrial Acquisition
Faropoint, a prominent tech-enabled real estate investment manager, has announced its first acquisition in Los Angeles with the purchase of a multi-tenant industrial property located at 605-655 Hawaii Avenue in Torrance, California. The property, which was acquired for $9.975 million, marks a significant step in Faropoint’s strategy to expand its presence on the West Coast and strengthen its portfolio of last-mile industrial properties.
Strategic Growth in Los Angeles Market
The Los Angeles market has always been a key target for Faropoint due to its strategic location and its prominence in the U.S. industrial sector. Faropoint’s decision to enter the market is part of a larger national expansion plan that aims to establish a strong foothold in one of the most competitive and high-demand industrial regions in the country. According to Jordan Nathan, Head of Corporate Investments at Faropoint, “The Los Angeles market represents a strategic next step in growing our national platform. This initial acquisition provides us with an excellent foundation to build upon.”
The industrial facility spans 36,491 square feet and is fully leased to four tenants. Built in 1963, the property features tilt-up construction, a clear height of 18’10”, and six double dock-high loading doors, making it suitable for a variety of industrial uses. The location is prime, situated in Torrance, CA, a key industrial hub with proximity to critical infrastructure such as the Port of Los Angeles, LAX, and the 405 Freeway, providing convenient access to both Los Angeles and Orange County.
Torrance Submarket’s Strong Fundamentals
The Torrance submarket, where the property is located, has long been considered one of the most desirable industrial locations in Los Angeles. The area boasts exceptional real estate fundamentals, including a vacancy rate for spaces under 20,000 square feet of less than 2.4%, which is significantly lower than the greater Los Angeles metro average. This market’s low vacancy rate, along with the strong demand for industrial space driven by its proximity to major logistics hubs and population centers, makes it a prime area for industrial investment.
Harold Levy, Vice President of Acquisitions at Faropoint and head of the company’s new Los Angeles office, emphasized the submarket’s strong potential, stating, “The Torrance submarket offers exceptional fundamentals with sub-20K SF vacancy rates below 2.4%, which is less than half of the greater Los Angeles metro average. By acquiring this multi-tenant property with value enhancement potential, we’re establishing our presence in one of the nation’s most supply-constrained industrial markets.”
Value-Add Strategy and Future Potential
Faropoint plans to implement its well-established value-add strategy for this acquisition, focusing on enhancing the property’s operational efficiency and tenant mix. The firm aims to make targeted capital improvements and optimize the leasing strategy, ensuring that the property remains competitive in the market while meeting the needs of its diverse tenant base. The strategy will not only improve the asset’s operational performance but also increase its long-term value.
Levy further explained the rationale behind the acquisition, stating, “The South Bay is one of the most desirable industrial locations in Los Angeles due to its proximity to major logistics hubs, high-quality housing, and labor. This acquisition further aligns with our value-add investment strategy, which focuses on well-located assets with operational improvement potential in supply-constrained submarkets.”
The property’s proximity to key logistics and transportation hubs is an important factor in Faropoint’s decision to acquire the Torrance facility. By acquiring assets in such strategic locations, Faropoint aims to continue capitalizing on the growing demand for industrial space that serves e-commerce and last-mile distribution networks, which have been experiencing rapid growth due to changing consumer habits.
Expanding Faropoint’s West Coast Presence
This acquisition follows Faropoint’s recent establishment of its Los Angeles office, a key milestone in the company’s broader West Coast growth strategy. The company has appointed Harold Levy as Vice President of Acquisitions for the region, alongside Zev Fagan, Senior Acquisitions Associate, to spearhead the firm’s expansion efforts in Southern California. Faropoint’s focus on leveraging local expertise and relationships has been integral to its success in acquiring off-market deals in competitive markets like Los Angeles.
Nathan remarked, “The Los Angeles market represents a strategic next step in growing our national platform. This expansion aligns with our disciplined approach of identifying opportunities in high-barrier-to-entry markets where we can leverage our data-driven investment model. Harold Levy and Zev Fagan bring local expertise and relationships that are integral to our growth plan in Southern California, where we see tremendous long-term potential for value creation.”
Faropoint’s growing presence in the region is part of its broader strategy to expand across the U.S., with operations in 16 key markets and eight regional offices. The firm continues to identify and acquire well-located industrial assets with high value-add potential, supported by its data-driven approach and extensive local networks.
Faropoint’s Track Record and Market Leadership
Since its inception in 2012, Faropoint has built a reputation as a leader in the U.S. industrial real estate market. The firm has acquired over 500 warehouses, representing more than $3 billion in assets. Faropoint specializes in last-mile logistics properties, which have become increasingly important in the age of e-commerce and fast-paced delivery networks.
Faropoint’s success is driven by its ability to source off-market deals through its extensive broker network and strong local relationships. The firm is known for its deep market expertise and its ability to identify opportunities in supply-constrained markets that offer significant upside potential.
The firm’s commitment to expanding its footprint in key markets, including Los Angeles, is reflective of its long-term vision to build a diversified portfolio of high-quality industrial assets across the United States. With the strategic acquisition of the Torrance property, Faropoint is well-positioned to take advantage of the growing demand for industrial space in one of the country’s most dynamic regions.
