Sterling Organization bought two grocery-anchored shopping centers in the Minneapolis/St. Paul metropolitan area for $41.7m. The portfolio was purchased from IRC Retail Centers on behalf of Sterling’s institutional grocery-anchored shopping center core fund. Both properties, Shannon Square Shoppes (97,638 sq ft) and Village Village Ten Shopping Center (208,127 sq ft), are anchored by Cub Foods. Currently 99 percent leased, the centers’ tenants include Life Time Fitness, Anytime Fitness, Dollar Tree, Caribou Coffee, Great Clips, Subway, AAA, Chipotle, T-Mobile, The UPS Store and H&R Block. The acquisition marks Sterling Organization’s fourth and fifth shopping center assets on the Minneapolis market.
“Through our SUP I fund, we specifically target defensive assets such as Shannon Square Shoppes and Village Ten Shopping Center. We believe these two well-located, high-occupancy, stabilized properties anchored by the market’s leading grocery chain will provide the long-term, consistent cash flow expected by our SUP I investor partners,” said Brian Kosoy, managing principal, president and CEO of Sterling Organization.
