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Tuesday, June 6, 2017

Sterling Organization Sells Market at Opitz Crossing in Washington, D.C. MSA for $29.25 Million

FOR IMMEDIATE RELEASE

June 6, 2017 – PALM BEACH, FL – Sterling Organization, a vertically integrated private equity real estate investment firm has announced the sale of Market at Opitz Crossing, a 157,724-square-foot grocery-anchored shopping center in the Washington, D.C. MSA, to Klein Enterprises for $29.25 million. Market at Opitz Crossing was originally acquired on November 18, 2013, via Sterling’s institutional fund Sterling Value Add Partners, LP (“SVAP”) for $17.75 million. Geoffrey Millerd and Mat Adler of Newmark Grubb Knight Frank represented the Sterling-managed fund in the recent disposition of the asset.

Located at the intersection of Jefferson Davis Highway (US-1) and Opitz Boulevard just 1 mile east of Interstate 95 in Woodbridge, VA, Market at Opitz Crossing is anchored by Wakefern’s grocery concept PriceRite. During Sterling’s ownership, a new Chipotle Mexican Grill outparcel building was added and the occupancy of the shopping center increased from approximately 77% to 96%.

“We are very pleased with this transaction and happy to have another realization in our SVAP fund,” said Brian Kosoy, Managing Principal, President and CEO of Sterling Organization. “Our team should be proud of their ability to execute our business plan which — while the property was conservatively levered — produced a gross IRR of over 40% and a gross equity multiple of more than 2.7x during our 3.5 years of ownership on behalf of our investor partners.”

Market at Opitz Crossing was originally developed in 1991. Over 96,000 people live within a 3-mile radius where the average household income is more than $105,000. The property was the sixth asset purchased via Sterling’s value-add retail real estate investment fund, SVAP. That fund’s capital has been fully allocated and, after the disposition of Market at Opitz Crossing, currently owns 8 assets in 6 separate markets totaling more than 2.5 million square feet of gross leasable area. Sterling Organization is actively investing on behalf of two newer vintage funds: SVAP II, which focuses on value-add real estate assets where the primary value is retail; and Sterling United Properties I, which focuses on core/stabilized grocery-anchored shopping centers. In total, Sterling Organization owns more than 9 million square feet of retail real estate approaching $2 billion in value.

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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.

Media Contact:
Lauren Perry, (561) 623-5936 or lperry@sterlingorganization.com