Sterling closes debut fund

The Palm Beach, Florida-based retail specialist has closed its Sterling Value Add Partners fund with $138 million in equity commitments. The fund will target grocery-anchored shopping centres and power centres in major US markets.

Sterling Organization, a Palm Beach, Florida-based real estate investment firm that specialises in retail properties, has closed its debut commingled fund above its initial target. 

Sterling Value Add Partners has received total capital commitments of $138 million, exceeding its original fundraising target of $125 million. Sterling received commitments from endowments, public pension funds, fund of funds and family offices. 

The firm initially launched the commingled vehicle in the spring of 2011. The fund held a first close of $45 million in December 2011.

With leverage, Sterling Value Add Partners has more than $400 million of buying power. The fund will target fundamentally sound grocery-anchored shopping centres and power centres in major US markets with dense populations, high traffic counts, high barriers to entry and low anchor rental rates.

Brian Kosoy, president and chief executive officer of Sterling, said in a statement: “We feel that our investment strategy, combined with our platform, should enable us to provide our investors with superior risk-adjusted returns.”

Sterling has regional offices in Miami, Chicago, Charlotte, Dallas and San Antonio. The firm and its principals currently own an interest in approximately 5 million square feet of retail and other commercial real estate approaching $1 billion in value.