Episode 12: A Conversation with Orry Michael of Faropoint

Join us for an engaging episode of The Brokers with Orry Michael from Faropoint, a leading U.S. real estate investment firm specializing in last mile industrial real estate. Since its founding in 2012, Faropoint has become one of the top 20 industrial real estate owners in the country, thanks to its innovative approach and proprietary data platform.

In this episode, Orry Michael shares insights into Faropoint's strategy of acquiring Urban Distribution Centers below the institutional radar, a move that has positioned them as one of the top buyers in their active markets. With a clear focus on markets with strong demographics, high rental growth, and construction barriers, Faropoint actively invests in areas positively impacted by e-commerce growth.

Faropoint entered the New Jersey market in December 2022 with the acquisition of the Kushner portfolio, focusing on class B and class C shallow bay light industrial buildings. This move further demonstrates their keen eye for valuable investments in niche markets. Orry discusses how Faropoint maintains a balanced portfolio with approximately 85% stabilized assets and 15% value-add components. He also delves into their exit strategy of aggregating last mile individual warehouses into a sought-after portfolio, benefiting from significant portfolio premiums at disposition to institutional players.

One of the highlights of Faropoint's methodology is their use of an AI program called REXy, which assists in predicting market rents with remarkable accuracy. This cutting-edge tool gives Faropoint a competitive edge in making informed investment decisions.

Tune in to hear about the unique strategies and competitive edge that have propelled Faropoint to the forefront of the industrial real estate market. Whether you're an industry veteran or just getting started, this episode is packed with valuable insights and practical advice for navigating the dynamic world of real estate investment.