Sterling Organization Acquires 3 Retail Assets
The properties are anchored by Safeway supermarkets.
Private equity real estate investment firm Sterling Organization has acquired a three-property portfolio consisting of one grocery-anchored shopping center in Hawaii and two in northern California.
Invesco Real Estate sold the assets in a deal facilitated by Eastdil Secured Savills. The price was not disclosed.
The Hawaiian property is the 78,608-square-foot Kapahulu Shopping Center in Honolulu, which is 97 percent leased. The property is anchored by a Safeway and also includes such national retailers as AT&T, Panda Express and Supercuts.
The acquisition marks Sterling’s first investment in Hawaii. The property previously sold in 2011, when Invesco bought it for $49.4 million, according to Yardi Matrix data.
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The other properties in the portfolio are in the San Francisco Bay Area, including Safeway Burlingame, a fully leased, 70,174-square-foot shopping center in downtown Burlingame, in San Mateo County. The property is also anchored by a Safeway and houses such retailers as Union Bank, AT&T, StretchLab, Five Guys, Drybar and Great Clips. Safeway Burlingame previously traded for about $12.5 million in 2011.
The largest property in the portfolio is Pleasanton Gateway Shopping Center, a 128,275-square-foot shopping center in Pleasanton, in Alameda County. It is 99 percent leased and anchored by Safeway, with other tenants including CVS, Wells Fargo, Starbucks, Panda Express and The Habit Burger Grill.
Sterling Organization is a retail real estate specialist. With the addition of these shopping centers, the company now owns 83 properties via various funds and other investment vehicles, totaling more than 15 million square feet nationwide.
Investors Coming Back Around to Retail
Retail investment has seen an active September nationwide. Earlier in the month, EDENS acquired The Forum, a 263,000-square-foot open-air retail center in Carlsbad, Calif., from Northwood Investors and Nuveen Real Estate.
Rhino Investment Group acquired Randhurst Village, a 931,798-square-foot retail power center in Mount Prospect, Ill., for $95 million. The Chicago-area asset, sold by DLC Management, is anchored by Costco, Jewel-Osco and The Home Depot.
Also in September, LBX Investments paid $54.3 million for a 134,113-square-foot retail and mixed-use portfolio in Nashville. One of the assets is Breeze Block, a two-building shopping center comprising retail, restaurant and wellness space. Originally built in 1970 as an industrial facility, the property was converted to retail and expanded to its current size in 2023.
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