FD Stonewater Enhances STAR Evergreen Fund with Strategic Acquisition
FD Stonewater Expands Asset Portfolio with New Acquisition
FD Stonewater's STAR Evergreen Fund has successfully acquired the Alside Manufacturing and Distribution Center—an impressive 326,474 square foot industrial facility leased to Associated Materials. This acquisition marks a significant milestone for the STAR Fund as it further solidifies its strategic position in the market. The Alside property was procured through a unique structure, enabling original investors to receive OP Units, which allow for a tax-deferred transaction. Notably, this marks the third successful acquisition for the STAR Fund after its launch and the earlier acquisition of two seed assets recently.
Transforming Manufacturing through Strategic Investments
The Alside facility was built specifically for its tenant in 2005, showcasing its importance in the company's operations as one of their top-performing locations. FD Stonewater has a rich history with this property, having initially acquired it in April 2002. After entering into a short-term lease, they undertook a strategic long-term lease extension that included a substantial 103,920 square foot expansion. This expansion, which was completed in the second quarter of 2025, has turned the site into a premier manufacturing facility for its tenant.
The STAR Fund's Vision and Strategy
The STAR Fund employs a Single Tenant Active Return (STAR) strategy, concentrating on developing a diverse portfolio of mission-critical single-tenant real estate assets. Its investment focus spans industrial, advanced manufacturing, government, research and development, and office sectors. By emphasizing secondary and tertiary markets in the U.S., FD Stonewater aims to capitalize on unique opportunities that arise in these growing areas, further diversifying their investments.
Leadership Insights on the Acquisition
Owen Burke, Principal and Director of Asset Management, expressed enthusiasm about this acquisition, highlighting its significance as a single-tenant, mission-critical manufacturing asset bound by a long-term lease. He noted that the firm's commitment to nearshoring trends has proven advantageous, as this strategic move illustrates FD Stonewater's effective investment framework that has yielded considerable success over the past two decades.
Andrew Schwartzman, Principal and Director of Acquisitions, added his perspective on the collaboration between FD Stonewater's investment, asset management, and development teams, emphasizing how this partnership with their tenant not only drives revenue growth at the facility but also enhances overall value for investors. The continued ownership of this asset in the STAR Fund reflects their dedication to creating sustainable, profitable investments.
About FD Stonewater
FD Stonewater has made substantial strides in the real estate sector, having acquired, managed, and developed over 6 million square feet of single-tenant assets valued at more than $1.5 billion. With a wealth of experience across over 40 markets nationwide, the company showcases its national capabilities and expertise in asset management. Their commitment to understanding market trends allows them to identify and seize opportunities that are beneficial for both their investors and tenants.
Frequently Asked Questions
What is the STAR Evergreen Fund?
The STAR Evergreen Fund is an investment fund by FD Stonewater focusing on acquiring single-tenant mission-critical assets in various sectors.
Where is the Alside manufacturing facility located?
The Alside Manufacturing and Distribution Center is located in Yuma, Arizona.
What strategy does the STAR Fund employ?
The STAR Fund utilizes a Single Tenant Active Return strategy, focusing on a diversified portfolio across important sectors in secondary and tertiary markets.
How long has FD Stonewater been in operation?
FD Stonewater has been in operation for over 20 years, during which they have successfully managed significant real estate assets.
What are the future plans of the STAR Fund?
FD Stonewater plans to continue expanding the STAR Fund’s portfolio by pursuing attractive opportunities that arise in the industrial and related markets.
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