West Palm Beach, Florida, September 29th / PRNewswire / -- West Palm Beach, Florida-based private equity real estate investment firm focused on the retail sector, Sterling Organization, announced today that it has acquired Pavilions Marketplace. This is a shopping center with a floor area of 69,622 square feet, featuring Pavilions (a Albertsons supermarket) as the main tenant, and is located in West Hollywood, California. Sterling Organization represented its institutional value-added fund, Sterling Value Add Partners IV ( SVAP IV), in completing this acquisition, which also marks the 11th investment for this fund.

The current rental rate is 89%. The main tenant is a Pavilions supermarket with a high footfall and an area of 54,087 square feet. Other quality tenants include Chase Bank, Insomnia Cookies, and Nothing Bundt Cakes. The property covers an area of about 3.4 acres and is located at the intersection of Santa Monica Boulevard and North Robertson Boulevard, in the heart of one of the most densely populated and affluent urban communities in the United States. There are over 244,000 residents living within a three-mile trade area surrounding the property, with an average annual household income of more than $194,000. The property is geographically close to Beverly Hills and Century City.

“Pavilions Marketplace reflects the type of investment we have been seeking for Sterling Value Add Partners IV. We believe there is a direct opportunity to sign leases for high-quality, high-rent vacant spaces, which has the potential to turn them into iconic shopping center assets with supermarkets as the main tenants. This property is located in what we consider an irreplaceable location in West Hollywood, providing our team with the opportunity to improve its appearance, increase rental rates, optimize the tenant mix, and uncover some less obvious but high-quality and substantial sources of income. We are confident that our approach to ownership and business plan will both enhance the property’s status within the community and create meaningful value for our investment partners,” said Sterling Organization partner Bob Dake.

"As we continue to deploy capital on behalf of the SVAP IV fund, we will remain focused on acquiring shopping centers that are located in advantageous locations, have solid fundamentals, and offer significant value creation opportunities," said Jordan Fried, a partner at Sterling Organization. "We are excited about the risk-return profile that this investment brings to our SVAP IV fund partners. We would like to particularly thank Chris Hoffmann and the entire Eastdil Secured Savills team for their professionalism and pragmatic approach, which helped us complete this acquisition smoothly and within an accelerated timeline."

About Sterling Organization

Sterling Organization is a vertically integrated private equity real estate investment company that focuses on retail real estate assets across the United States. With the addition of this shopping center, Sterling Organization and its affiliates currently hold 83 properties in 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].

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SOURCE Sterling Organization