The sale of this 956,865-square-foot portfolio showcases the increasing demand among institutional investors for grocery-anchored and necessity-based shopping centers.
WEST PALM BEACH, FL / ACCESS Newswire / March 27, 2026 / Sterling Organization, a vertically integrated private equity real estate investment firm headquartered in West Palm Beach, Florida, announced the sale of a seven-property shopping center portfolio for $298 million on behalf of Sterling Value Add Partners II and Sterling Value Add Partners III funds.
The sale of this 956,865-square-foot portfolio showcases the increasing demand among institutional investors for grocery-anchored and necessity-based shopping centers. This transaction underscores the critical importance of scale for institutional investors seeking to efficiently allocate capital within the shopping center sector, where average asset sizes are generally smaller than other institutionally investable real estate asset classes, particularly for grocery-anchored assets.
Spanning multiple major MSAs across the country, the portfolio includes properties in the Los Angeles, San Diego, Dallas, Fort Lauderdale, and the Minneapolis MSAs. Six of seven of the assets are shopping centers anchored by grocers including Market Street (Albertsons), Cub, Sprouts Farmers Market, and Aldi. Collectively, these properties benefit from strong demographics, with approximately 123,000 people residing within a 3-mile radius of the portfolio assets and average household incomes of over $147,000.
"This transaction highlights Sterling's ability to opportunistically acquire, add value, operate, and round-trip grocery-anchored and necessity-based shopping center assets. We believe, and the market agreed, that thoughtfully exiting via an assembled and curated portfolio provided maximum appeal to large institutional investors," said Jordan Fried, Principal at Sterling Organization. "Institutional capital is now pursuing open-air shopping center assets or portfolios that offer scale, and this sale is a testament to the growing demand for well-located and thriving, necessity-driven retail assets."
Sterling enhanced the operating performance of each asset during the hold period by leveraging its vertically integrated platform, increasing occupancy from 77% at acquisition to 96% at disposition through focused leasing, targeted capital improvement projects, and asset management initiatives.
"Our focused and strategic leasing initiatives and direct tenant relationships played a pivotal role in elevating the performance of each of the seven assets," said Bob Dake, Principal at Sterling Organization. "The net absorption of almost 20% of the portfolio's total gross leasable area not only drove significant value via property-level income growth at each asset but also underscores the demand from retailers to occupy well-located grocery-anchored and necessity-based shopping centers. We believe the right shopping center assets, operated by the right teams, will outperform."
"We are grateful for the continued trust placed in us by our investor partners. We are satisfied with the performance our team achieved, particularly given the challenges presented by COVID and the significant rise in interest rates during the hold period for the assets. The result demonstrates the effectiveness of our disciplined approach to shopping center investing. Ultimately, Sterling's unwavering commitment remains centered on acquiring and managing shopping centers that feature exceptional real estate fundamentals and leveraging our teams' talents, deep relationships, and disciplined execution process will always be front and center in all we do on behalf of our partners," said Brian Kosoy, Managing Principal and CEO at Sterling Organization.
With the sale of this portfolio, Sterling Organization and its affiliates own 74 properties throughout the United States, across various funds and other investment vehicles, encompassing over 12 million square feet and exceeding $3.2 billion in value. The firm is actively seeking new investments across its various strategies. For acquisition or disposition inquiries, please contact investments@sterlingorganization.com.
SOURCE: Sterling Organization
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/real-estate/sterling-organization-sells-a-seven-property-almost-1-million-sq.-ft.-grocery-anchored-1152181
