Faropoint: Creating a Broker Network Within AtlasX

When Faropoint came to AtlasX, they were facing substantial friction in deploying $500M+ in capital on a smaller deal size (~$5M). In primarily focusing on last-mile industrial properties, Faropoint purchases smaller deal sizes, requiring higher deal volume to accomplish investment mandates. In deploying capital, Faropoint faced numerous challenges effectively managing deals and ensuring they were competitive. 

Additionally, with this volume of deals they sift through, they had to invest substantial time on the menial tasks of actually managing the deals. This resulted in substantial time sucks for analysts as well as difficulty ensuring they were on top of core timelines. 

Finally, Faropoint leveraged 3rd-party data to find comps; however, this information was often outdated. This over reliance on 3rd party property data subscriptions meant that they weren’t looking inward on the proprietary data they possessed which represented the most accurate view of the broader market landscape. 

Problems:

• Immense deal flow on smaller deal sizes but no feasible way to effectively manage deals 
• Major time suck managing volume of deals inputted into pipeline and managing them in an effective way 
• Inability to efficiently leverage the information they have from deal history to inform future deals, over reliance on out-of-date information from 3rd party property data subscriptions   

AtlasX had an answer to each of these core issues, enabling Faropoint to more effectively increase deal flow, streamline acquisitions, and leverage data. 

In order to address the deal flow, AtlasX provided a collaborative ecosystem through which brokers could input deals into a pipeline in a sanitized and confidential manner, enabling the Faropoint team to fill or kill deals more quickly without the time-suck of inputting deals. Faropoint CEO, Adir Levitas describes the uniqueness of the community they’ve built on the platform: 

“We have dozens of teammates, brokers and acquisition professionals linked together in a marketplace with more than $1B worth of acquisition pipeline to examine at any given time. So the strength is the community that grew into the platform.”

In order to address the issues of managing the timelines for the bulk of deals in the pipeline, AtlasX provided automated workflows for task management, deal entry, and reporting to ensure that Faropoint is staying ahead of key deadlines and keeping their deal engine churning. 

One of the most valuable areas that Faropoint has been able to cultivate is their industry-leading proprietary data in the industrial space. AtlasX provides segmentation by market, deal-type, and stage, enabling Faropoint to leverage prior data from killed and active deals to better influence decisions, understanding the market more effectively with business intelligence. Faropoint CEO, Adir Levitas, describes their competitive edge gain through AtlasX as being: 

“Brokers and potential sellers are able to upload data and insights into AtlasX, setting Faropoint’s pipeline apart from other due diligence teams or 3rd-party property search engines” 

Through their implementation of AtlasX, Faropoint has been able to create a deal engine that does 150+ acquisitions per year through a deal submission portal. This creates an environment that ensures the investment team spends more time analyzing and offering on deals, rather than focusing on sourcing. 

Additionally, Faropoint has become more closely connected with its network of brokers, enabling them to have a strong understanding of the deal types that Faropoint is looking for. Their speed to analyze and offer on deals also strengthens their reputation with their network, ensuring that the brokers’ investment of time is worth it to them. 

Finally, with industry-leading proprietary information, Faropoint gains a competitive advantage from the sheer amount of data and personal insights it gathers on every property it considers. This enables them to be more confident about each deal they make and understand the nuances of local markets. With each additional entry, the comparisons on which it bases offers on becomes more nuanced and precise.