The newly formed Raleigh, N.C.-based LBM investment firm Cornerstone Building Alliance announced it has finalized its investment in Phoenix-based building material distributor ALC Holding. The investment is Cornerstone’s first and adds Arizona’s largest building materials distributor to its fledgling portfolio. ALC operates Alliance Lumber, Alliance Truss, Arizona Structural Laminators, Core Materials Distribution, and ALC Transportation.

“Alliance is the leading distributor in a top five housing market,” said Cornerstone president and CEO Steve Short in a statement. “Phoenix and Arizona, which clearly suffered significant downturns, have done a remarkable job of working through their distressed housing problems and are now well positioned to rebound. Our investment positions the business to strategically capitalize on the market recovery both organically and acquisitively.”

The move follows an announcement earlier this month by two former Stock Building Supply executives, Steve Short and Fenton Hord, unveiling Cornerstone and outlining its plan to target and invest in LBM firms—including distributors, one-step manufacturers, and building products’ installers—with annual revenues of $10 million to more than $100 million.

Cornerstone says it will take a majority share in the firms in brings into its portfolio, while letting the companies' existing leadership retain active ownership.