CHALLENGE
Faropoint began in 2012 as a small group of friends from Israel buying singlefamily rentals in Memphis and has since grown into a multi-billion-dollar industrial fund. To keep scaling the core platform, management decided to shed every non-industrial holding, including three Memphis office buildings: Champion Hills (75,578 SF), 2670 Union Avenue Extended (119,213 SF), and Poplar Towers (100,943 SF). All three assets carried separate loans with that were approaching staggered maturity dates just as the Federal Reserve’s rapid rate hikes froze the office debt market. Post-COVID remote-work trends were compressing office demand, and each property sat in a different submarket, appealing to distinct buyer profiles. Faropoint needed to exit the buildings before the loans matured, minimize losses in a soft office climate, and redeploy the capital into industrial acquisitions.
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ACTION
Landon Williams and his Cushman & Wakefield team underwrote each asset to the new market cycle, priced them for private-capital buyers, and ran three parallel but independent sale processes aligned with the individual loanmaturity deadlines. Marketing focused on family offices and high-net-worth investors capable of all-cash closings, with the option to layer debt post-sale once credit conditions improved. Tailored campaigns, one for each submarket, leveraged a 14,000-strong investor database, virtual tours, and direct calls to decision-makers. The team staggered launch dates so diligence and closing timelines matched the seller’s debt maturities, assisted buyers in designing capital stack, and kept competitive tension high until each deal was under contract.
RESULT
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Portfolio sold for $22,363,000 across 295,734 SF (three separate transactions)
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Average cap rate: 9.34% despite the weakest office market in a decade
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Secured 193 executed confidentiality agreements, approximately 5x market expectations
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Staggered sale timelines matched each asset’s loan maturity schedule, eliminating default risk
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All closings completed within six months of one another and ahead of loan-maturity deadlines
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Proceeds redeployed into Faropoint’s core industrial strategy, furthering the firm’s transition away from office
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