Sterling Organization Acquires Portfolio of Shopping Centers for $180.5 Million

Sterling Organization, a private equity real estate investment firm, announced the acquisition of a three-property portfolio from SITE Centers for $180.5 million. The purchase was made through Sterling's Value Add Fund, Sterling Value Add Partners IV, L.P. ("SVAP IV"). The fund raised $600 million in equity in Q2 of 2024.

The newly acquired portfolio includes Fairfax Towne Center in Virginia, Presidential Commons in Georgia, and Village at Stone Oak in Texas. These properties benefit from high demographic profiles with over 84,000 residents within a three-mile radius and average household incomes exceeding $165,000 annually. The current occupancy rate across the portfolio is 86%.

Fairfax Towne Center spans 253,392 square feet, anchored by Safeway, and includes tenants like T.J. Maxx and Regal Cinemas. Presidential Commons covers 264,271 square feet, anchored by Kroger, and includes retailers such as Burlington and ULTA Beauty. Village at Stone Oak is a 476,371-square-foot power center with tenants including HomeGoods and Petco.

"We are thrilled to expand our SVAP IV portfolio with these assets," said Brian Kosoy, CEO of Sterling Organization. He emphasized the potential for value-add returns in these prime markets. Jordan Fried, Principal at Sterling, expressed gratitude to SITE Centers for their collaboration during the transaction.