Sterling Organization Acquires Three Grocery-Anchored Shopping Centers in California and Hawaii

Sterling Organization, a private equity real estate investment firm, announced its acquisition of a three-property portfolio of grocery-anchored shopping centers totaling 277,057 square feet. The centers are located in California and Hawaii.

The acquired properties include Safeway Burlingame in Burlingame, California; Pleasanton Gateway Shopping Center in Pleasanton, California; and Kapahulu Shopping Center in Honolulu, Hawaii. Each property is anchored by a Safeway grocery store and is approximately 99% leased.

The acquisition was made on behalf of Sterling's United Properties (SUP) fund series, which focuses on grocery-anchored shopping centers. The firm cited strong demographic characteristics for the trade areas, with an average of over 124,000 residents and average annual household incomes exceeding $222,000 within a three-mile radius of the centers.

Sterling Organization described the portfolio as "super core trophy" properties, noting that they are difficult to replicate and located in land-constrained, desirable trade areas. The firm anticipates the portfolio will generate consistent and growing cash flow for investors. This acquisition marks Sterling's first investment in Hawaii, a market characterized by limited land availability and significant development barriers.