December 19, 2022
FD Stonewater Acquires First Assets for New Open-End Fund

FD Stonewater announced the first closing of the FD Stonewater STAR Evergreen Fund, L.P. (the “STAR Evergreen Fund“) in the amount of $19 million, simultaneous with the acquisition of two seed assets.

The fund closed on an 83,000 square foot mission critical research and development, office, and specialized manufacturing facility located adjacent to Redstone Arsenal in Huntsville, AL. The building is 100% leased to a leading defense contractor and was purpose-built for the tenant in 2020. The tenant utilizes the facility to service government contracts.

The fund also closed on the second seed asset, a 55,624 square foot Class A headquarters building 100% leased to Harvey | Harvey-Cleary, a full-service general contractor based in Houston, TX, and leased through 2036. The headquarters is located in Houston’s Westchase submarket and benefits from the area’s considerable economic growth and proximity to major transit hubs.

The fund has a Single Tenant Active Return (STAR) strategy with a focus on assembling a diversified portfolio of mission-critical single-tenant real estate assets in U.S. secondary and tertiary markets across industrial, government, research and development, and office sectors.

Owen Burke, Principal and Director of Asset Management

“The team’s deep experience in investing across sectors and geographies will enable us to build a portfolio of high-quality, mission-critical assets for the fund. Additionally, the fund will benefit from the firm’s unique fully integrated cross-platform approach by utilizing our investment, asset management, development, and brokerage platforms at various stages of a deal. Our cycle-tested strategy focuses on acquiring resilient assets with both durable cash flows and defined opportunities to seek value enhancement.”

Andrew Schwartzman, Principal and Director of Acquisitions

“We are excited to announce the successful acquisition of both seed assets. Both facilities fit the single-tenant, mission-critical objective that we are actively pursuing for the fund. With the combination of compelling tenant stories and strong underlying real estate fundamentals, these deals are representative of FD Stonewater’s single-tenant strategy that has realized tremendous success over the past 20 years.”

FD Stonewater has acquired, asset managed, and/or developed 5.6 million square feet of single-tenant assets valued at $1.3 billion. FD Stonewater’s national capabilities encompass over 8 million square feet of experience in more than 40 secondary and tertiary markets across the country.