FD Stonewater Expands Portfolio with Strategic Acquisition
FD Stonewater's Recent Acquisition
FD Stonewater's STAR Evergreen Fund, L.P. (the "STAR Fund") recently announced an important development. The fund has acquired Alside Manufacturing and Distribution Center, a substantial industrial property extending over 326,474 square feet. This facility is currently leased to Associated Materials and reflects a significant asset for the STAR Fund.
The Structure of the Acquisition
This acquisition was executed through the STAR Fund's UPREIT structure, allowing original investors to receive OP Units in a tax-deferred transaction. This marks the STAR Fund's third acquisition since its launch, following the successful addition of two seed assets at the end of 2022.
The Value of the Alside Facility
Originally built in 2005, the Alside facility was specifically designed for its tenant and has become one of the top-performing manufacturing and distribution centers. In 2002, an affiliate of FD Stonewater acquired the property, initially with a short-term lease. A successful long-term lease extension was executed, including a significant 103,920 square foot expansion, completed in the second quarter of 2025. This expansion transformed the facility into a signature location for Alside’s operations.
Strategic Focus of the STAR Fund
The STAR Fund is guided by a Single Tenant Active Return ("STAR") strategy, which aims to create a varied portfolio of crucial single-tenant real estate assets across secondary and tertiary markets in the United States. The focus spans several sectors, including industrial, advanced manufacturing, government, R&D, and office environments.
Testimonials from Leadership
Owen Burke, Principal and Director of Asset Management at FD Stonewater, shared his enthusiasm about the acquisition: "We are excited to announce the successful acquisition by the STAR Fund of this single-tenant, mission-critical manufacturing asset with a long-term lease. We have firmly believed in opportunities associated with nearshoring trends since our original acquisition of the property. With the combination of a compelling tenant story and strong underlying real estate fundamentals, this deal is representative of FD Stonewater's single-tenant strategy that has realized tremendous success over the past 20 years."
Collaboration and Value Creation
In addition, Andrew Schwartzman, Principal and Director of Acquisitions, commented on the collaborative efforts of FD Stonewater's teams: "This is a great cross-platform case study of FD Stonewater's investment, asset management, and development teams collaborating with our tenant to drive more revenue through the facility and increase value for our investors. We are thrilled to continue our ownership of the asset in our STAR Fund vehicle."
Overview of FD Stonewater
FD Stonewater has a strong track record, having acquired, managed, and developed over 6 million square feet of single-tenant assets valued at more than $1.5 billion. Their operational capacity spans more than 8 million square feet of experience across more than 40 secondary and tertiary markets in the U.S.
Conclusion
In summary, the acquisition of the Alside facility illustrates FD Stonewater's commitment to expanding its portfolio through strategic investments. With a robust strategy and dedicated management team, the STAR Fund is well-positioned to leverage growth opportunities in the single-tenant real estate market.
Frequently Asked Questions
What is the STAR Evergreen Fund?
The STAR Evergreen Fund is a real estate investment fund by FD Stonewater focused on single-tenant assets.
What did FD Stonewater acquire?
FD Stonewater acquired the Alside Manufacturing and Distribution Center, a sizable industrial facility.
How does the UPREIT structure benefit investors?
The UPREIT structure allows original investors to receive OP Units, facilitating a tax-deferred investment process.
What sectors does the STAR Fund focus on?
The STAR Fund invests in industrial, advanced manufacturing, government, R&D, and office sectors.
How long has FD Stonewater been active in real estate?
FD Stonewater has been active in the market for over 20 years, building a robust portfolio of assets.
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