Sterling Organization raised $495m for its fourth discretionary closed end fund. The company will use the funds in Sterling Value Add Partners III to acquire grocery-anchored shopping centers, street retail, power centers and mixed-use properties in major markets across the United States. Commitments were made by a diverse investor base, including domestic endowments, foundations, private and public pension plans, fund of funds and large family offices. With leverage, SVAP III has more than $1.25bn of buying power.
“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 Kosoy, managing principal, president and CEO of Sterling Organization. “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.”
