West Palm Beach, Florida, September 28th / PRNewswire / -- West Palm Beach, Florida-based private equity real estate investment firm Sterling Organization, which focuses on retail real estate, announced today that it has acquired a core, grocery-driven shopping center portfolio consisting of three properties, with a total area of 277,057 square feet. This portfolio was acquired on behalf of Sterling's core grocery-driven shopping center fund series Sterling United Properties ( SUP ).
The portfolio includes two properties located in the San Francisco Bay Area: Safeway Burlingame in Berlingham, California, and Pleasanton Gateway Shopping Center in Pleasanton, California; in addition, there is also Kapahulu Shopping Center in Honolulu, Hawaii. The combined rental rate for these three properties is 99%. Each property has a high-performing Safeway grocery store as its main tenant and is situated in affluent and densely populated business districts. The company stated that these shopping centers benefit from the strong real estate fundamentals in a market with limited land availability; the average population within a three-mile radius of these business districts exceeds 124,000 people, with an average annual household income of over $222,000.
“This combination of acquisitions provides us with an extremely rare opportunity to add what we consider to be three super-core, iconic properties to the Sterling United Properties fund series. Each shopping center is unique and is located in some of the most restricted and attractive commercial districts in the United States. We expect this portfolio to continue to generate stable, predictable, and growing cash flows for the fund and our investment partners,” said Jordan Fried, a partner at Sterling Organization. “We would like to thank Chris Hoffmann of Eastdil Secured Savills and the entire team for their professionalism and assistance, which made this transaction smooth and efficient for all parties involved.”
"This portfolio fits very well with our investment strategy for the SUP series of funds, as it combines stable, fundamentally sound real estate with defensive characteristics; in each property and its respective sub-markets, tenant demand is expected to continue to exceed the supply of available space. We look forward to leveraging the leasing and asset management platform of Sterling to support and enhance the continuous, stable cash flow performance of each property," added Bob Dake, a partner of Sterling Organization.
Safeway Burlingame
Safeway Burlingame is a 70,174-square-foot shopping center dominated by grocery stores with a 100% occupancy rate, located in the downtown area of Berlingham on the San Francisco Peninsula. The property's main tenant is the high-traffic Safeway, and it also features a variety of national retailers such as Union Bank, AT &T, StretchLab, Five Guys Burgers, and, Fries, Drybar, and Great Clips. This center serves the affluent communities between San Francisco and Silicon Valley; within a three-mile radius, there are over 111,000 residents, with an average annual household income of more than $272,000.
Pleasanton Gateway Shopping Center
Pleasanton Gateway Shopping Center is a 128,275-square-foot shopping center dominated by grocery stores with a rental rate of 99%. It is located in Pleasanton, within the Tri Valley area, which is a affluent suburb of the San Francisco metropolitan statistical area. The main tenant of this center is Safeway, and the tenant mix includes several national retailers, restaurants, and service providers such as CVS, Wells Fargo, Starbucks, Panda Express, and The Habit Burger Grill. This property services a highly affluent business district, with approximately 66,000 residents within a three-mile radius, and the average household income exceeds $259,000.
Kapahulu Shopping Center
Kapahulu Shopping Center is a 78,608-square-foot shopping center dominated by grocery stores, with a rental rate of 97%. It is located in the Kapahulu corridor of Honolulu, situated between Waikiki and the central business district of Honolulu. The property's main tenant is a high-performing Safeway, and it also includes national retailers such as AT &T, Panda Express, and Supercuts. This center serves nearby residential communities, the University of Hawaii community, as well as one of the state's most active tourist corridors. Its customer base comes from densely populated commercial areas; within a three-mile radius, there are approximately 196,000 residents with an average annual household income of over $137,000. This acquisition marks Sterling's first investment in Hawaii and expands the company's presence into a market with limited land supply and higher development barriers.
About Sterling Organization
Sterling Organization is a vertically integrated private equity real estate investment company that focuses on retail real estate assets in the United States. With the addition of these shopping centers, Sterling Organization and its affiliates currently own 83 properties across various funds and other investment vehicles, covering a total area of over 15 million square feet, with an asset value exceeding $4 billion. The company is headquartered in West Palm Beach, Florida, and has offices throughout the United States. For leasing opportunities, please contact [email protected].
Contact person: Margaret Cohen, [ email protected ]
Kathy Panagopoulos, [ email protected ]
