WEST PALM BEACH, Fla., September 27, 2024 Sterling Organization, a vertically integrated private equity real estate investment firm whose national platform is focused on investing primarily in retail real estate assets, has announced the acquisition of a three-property portfolio acquired from SITE Centers. The portfolio was purchased on behalf of Sterling’s Value Add Fund investment vehicle Sterling Value Add Partners IV, L.P. (“SVAP IV”), which held its final closing in Q2 of 2024 having raised $600 million of equity. The $180.5 million deal included Fairfax Towne Center in Fairfax, Virginia (Washington, D.C. MSA), Presidential Commons in Snellville, Georgia (Atlanta MSA), and Village at Stone Oak in San Antonio, Texas (San Antonio MSA).
Collectively, the properties boast impressive demographics, with over 84,000 residents within a three-mile radius and average household incomes of more than $165,000 per year. Each property has a grocery component (Kroger, Safeway, Target), and the portfolio has a current occupancy rate of 86%.
Fairfax Towne Center is a 253,392-square-foot Safeway-anchored shopping center located at 12100-12214 Fairfax Towne Center in Fairfax, Virginia (Washington, D.C. MSA), with additional national retail tenants including but not limited to T.J. Maxx, Regal Cinemas and JOANN Fabric and Crafts.
Presidential Commons is a 264,271-square-foot Kroger-anchored shopping center located at 1630-1708 Scenic Highway N. in Snellville, Georgia (Atlanta MSA). Its additional national retail tenants include Burlington, ULTA Beauty, Petco, and Five Below. The center is also shadow-anchored by an unowned Home Depot.
Village at Stone Oak is a 476,371-square-foot Power Center located at 22610 U.S. Hwy 281 N. in San Antonio, Texas (San Antonio MSA), anchored by national retail tenants including but not limited to HomeGoods, Petco, Ross Dress for Less, DSW, Hobby Lobby, ULTA Beauty and Dollar Tree. The center is shadow-anchored by an unowned Super Target.
“We are thrilled to expand our SVAP IV portfolio of shopping centers with the addition of these three great assets, each of which has actionable, tangible, value-add levers for our team to pull as we seek to execute each property’s business plan,” said Brian Kosoy, Managing Principal and CEO of Sterling Organization. “It is not easy to acquire a portfolio comprised of only high-quality assets in prime markets where we believe value-added returns can be achieved. Our team is excited to get to work and execute on behalf of our investor partners,” added Kosoy.
“We’d like to thank John Cattonar, EVP and Chief Investment Officer at SITE Centers, and his team for their collaboration with this transaction. We truly appreciate the relationship and their entire team’s professionalism from start to finish,” added Jordan Fried, Principal of Sterling Organization.
Sterling Organization and its affiliates own and/or manage 75 properties across the U.S. with more than 13 million square feet of primarily retail real estate across the U.S. worth over $3 billion in value. Sterling is actively acquiring shopping centers and currently has more than $1 billion of buying power.