Sterling Organization, a private equity real investment management and services firm, has closed its third value-add retail real estate fund at $495 million, beating its $450 million target. The limited partners of Sterling Value Add Partners III LP include domestic endowments, foundations, private and public pension plans, fund of funds and large family offices. The fund will target grocery-anchored shopping centers, street retail, power centers and mixed-use properties in major markets across the United States.
Palm Beach, FL (July 18, 2018) – Sterling Organization, a vertically integrated private equity real estate investment management and services firm, announced the final closing of its fourth discretionary closed end fund, Sterling Value Add Partners III, LP (“SVAP III”), with total capital commitments of $495 million. Sterling exceeded its fundraising target of $450 million.
Commitments were made by a diverse investor base which includes domestic endowments, foundations, private and public pension plans, fund of funds and large family offices. With leverage, SVAP III has more than $1.25 Billion of buying power.
SVAP III intends to leverage Sterling Organization’s national platform and proven track record of value-add retail real estate investing. The fund will primarily target grocery-anchored shopping centers, street retail, power centers and mixed-use properties in major markets across the United States. Sterling Organization’s first fund in its value-add series, Sterling Value Add Partners (“SVAP I”), closed with total capital commitments of $138 million. The second fund in the series, Sterling Value Add Partners II (“SVAP II”), closed with total capital commitments of $311 million. Sterling has a core closed-end fund vehicle, Sterling United Properties I (“SUP I”) which closed with total capital commitments of $160 million, through which the firm is also currently investing.
“We would like to thank both our long-time partners and new partners for the faith and trust they have placed in our team with their commitments to SVAP III,” said Brian D. Kosoy, Managing Principal, President and Chief Executive Officer of Sterling Organization. “We are both humbled by and grateful for their support. As a result of macro challenges facing traditional retailers, we are keenly aware that it is not an easy time politically for institutional investors to invest in brick-and-mortar retail real estate. Our entire team is committed to working tirelessly to take advantage of market dislocation and a rapidly evolving retail landscape on behalf of our partners.”
About Sterling Organization
Sterling Organization is a vertically integrated private equity real estate firm focused on retail real estate. The company’s national platform is focused on investing in value-add retail real estate assets and stabilized/core grocery-anchored shopping centers in major markets across the United States on behalf of Sterling’s principals in partnership with the highest quality institutional investors. Sterling Organization is headquartered in Palm Beach, FL, and currently has regional offices located in Atlanta, Chicago, Los Angeles, New York City, and Washington, D.C. For additional information, please visit www.sterlingorganization.com.