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Press Release

Thursday, September 22, 2016

Sterling Organization Acquires 635,382 SF Park North Shopping Center in San Antonio for $81 Million


September 22, 2016 - PALM BEACH, FL – Sterling Organization, a vertically integrated private equity real estate investment firm headquartered in Palm Beach, FL, has announced the acquisition of Park North, a 635,382-square-foot power center in San Antonio, TX.  The asset was purchased on behalf of the firm’s institutional value-add fund Sterling Value Add Partners II, LP (“SVAP II”) for $81,000,000.  The transaction was brokered by Chris Cozby and Chris Gerard of the CBRE National Retail Investments Group’s Dallas office.
Park North consists of 17 retail buildings on 45.758 acres of land.  The property is located along San Antonio’s Interstate Loop 410 (242,000 cars per day) between Blanco Road (24,000 cars per day) and San Pedro Avenue (34,000 cars per day), approximately 7 miles north of downtown.  Over 113,000 people live within a three-mile radius of the property, where the average household income is over $63,000.  Within a five-mile radius, the population exceeds 322,000 people and the average household income is over $70,000.
The competitive set in the retail trade area of Park North is currently 99% leased (excluding Park North) and includes North Star Mall — one of the most successful malls in Texas — which sits directly across the street from the purchased property.  Park North itself is currently 73% occupied and is anchored by Target, Alamo Drafthouse and Cost Plus World Market.  There is also a 214,000-square-foot Sears at the property, which was not included in the transaction.  Other national and regional businesses at Park North include Mattress Firm, Payless Shoesource, Plato’s Closet, Sports Clips, DXL Men’s Apparel, Norris Conference Center and DeVry, and well as destination-oriented restaurants and various entertainment venues such as Chipotle, Twin Peaks, Panda Express, The Egg & I, Baskin Robbins and LOL Comedy Club.  Park North was redeveloped into a power center in 2008 via a de-malling of Central Park Mall.
“We are pleased to add Park North to our SVAP II owned portfolio,” said Brian Kosoy, Managing Principal, President and CEO of Sterling Organization.  “Park North sits on incredible dirt and along with North Star Mall anchors what is one of the most dynamic, dense and infill retail trade nodes in central Texas.  If our team can improve some functional deficiencies as intended, we believe Park North has the potential to become another tremendous value-add retail real estate success story for our team and our investor partners in San Antonio.”
“We want to thank Chris Cozby and Chris Gerard of CBRE and our lender partners PNC Bank and Capital Bank for helping us get the deal done,” Mr. Kosoy added.  “We appreciate their professionalism and our relationship with each in making the execution of what was a complicated deal go so smoothly.  We are hopeful and intend that we will be able to grow each relationship through repeated successful transactions for years to come.”
Sterling Organization also currently owns and manages Grandview Shopping Center on Callaghan Road and Interstate Highway 10 in San Antonio.  Sterling Organization successfully sold Ingram Hills Shopping Center, also on Callaghan Road at the intersection of Ingram Road, in 2013.  From coast to coast, Sterling Organization and its principals own approximately 8.5 million square feet of primarily retail real estate exceeding $1.5 billion in value.  Park North is the tenth asset acquired through the firm’s SVAP II private equity fund.
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About Sterling Organization
Sterling Organization is a vertically integrated private equity real estate firm that has an established track record of providing exceptional risk-adjusted returns to its partners, in both relative and absolute terms. The company’s national platform is focused on investing in value-add retail real estate assets and stabilized/core grocery-anchored shopping centers in major markets across the United States on behalf of Sterling’s principals in partnership with the highest quality institutional investors. Sterling Organization is headquartered in Palm Beach, Florida. For more information, please visit
Media Contact:
Lauren Burford, (561) 623-5936