FD Stonewater Expands STAR Evergreen Fund with Alside Acquisition

FD Stonewater Expands Its Portfolio with Alside Acquisition

On October 1, 2025, FD Stonewater announced a significant addition to its STAR Evergreen Fund, L.P., as it acquired the Alside Manufacturing and Distribution Center located in Yuma, Arizona. This 326,474 square-foot industrial facility is currently leased to Associated Materials, marking a strategic enhancement to FD Stonewater's real estate portfolio.

This acquisition is noteworthy as it operates within the fund's UPREIT structure, which provides investors with a unique opportunity to receive Operating Partnership Units (OP Units) for a tax-deferred transaction. The purchase represents the STAR Fund's third acquisition since its inception and follows the successful acquisition of two seed assets in late 2022.

The Alside facility has been a significant asset for the company since its purpose-built construction in 2005, and is recognized as one of the top-performing manufacturing and distribution sites for the tenant. In April 2002, an affiliate of FD Stonewater acquired the property when it had a short-term lease. The firm successfully negotiated a long-term lease extension which included a substantial expansion of the facility by 103,920 square feet, completed in the second quarter of 2025. This expansion has transformed the Alside property into a cornerstone manufacturing location for its tenant.

The STAR Fund adopts a Single Tenant Active Return (STAR) strategy, focusing on building a diversified portfolio of mission-critical, single-tenant real estate assets situated in secondary and tertiary markets across the U.S. This investment strategy spans various sectors, including industrial, advanced manufacturing, government, research and development, and office spaces.

Owen Burke, Principal and Director of Asset Management for FD Stonewater, expressed enthusiasm about the acquisition. “We believe in the potential of nearshoring trends that we identified with our initial acquisition. The combination of a compelling tenant story and robust real estate fundamentals marks this acquisition as a prime example of our successful single-tenant strategy developed over the past two decades.”

Andrew Schwartzman, Principal and Director of Acquisitions, echoed Burke’s sentiments, highlighting the collaborative effort across FD Stonewater’s investment, asset management, and development teams. This partnership aims to further enhance revenue generation at the facility and maximize value for investors. “We are thrilled to continue our ownership of this asset under our STAR Fund framework,” Schwartzman commented.

FD Stonewater's experience in the field is robust, having acquired, managed, and developed over 6 million square feet of single-tenant assets worth more than $1.5 billion. The company’s national capabilities include extensive experience across over 8 million square feet in more than 40 secondary and tertiary U.S. markets.

For more information on FD Stonewater and their STAR Fund offerings, interested investors can visit their official website, FD Stonewater and for more details regarding the STAR Fund, click here.

This acquisition is a strategic move that reflects FD Stonewater's commitment to identifying and capitalizing on lucrative real estate opportunities within the industrial market, positioning the STAR Fund for continued growth and success in the years ahead.