Nuveen has bought a seven-property retail portfolio for $298 million, according to public records. Sterling Organization sold the assets on behalf of the Sterling Value Add Partners II and Sterling Value Add Partners III funds. The assets total 956,865 square feet and were 96 percent leased upon closing. They are located across several metros, including Los Angeles, San Diego, Dallas, Fort Lauderdale, Fla., and Minneapolis.
The sale brings Sterling Organization’s U.S. portfolio to 74 assets totaling 12 million square feet and valued at $3.2 billion. The deal comes a few months after the company purchased Bristol Plaza, a 263,000-square-foot shopping center in Bristol, Conn. The $44 million transaction was completed through Sterling Value Add Partners IV.
Six out of the seven retail centers in the portfolio are grocery-anchored by Market Street, Cub, Sprouts Farmers Market and Aldi. While still under Sterling’s ownership, the assets’ vacancy rate improved from 23 percent to 4 percent at the time of the sale. The properties serve a total of 123,000 individuals living within a 3-mile radius, with average household incomes of $147,000, according to company data.
One of the assets in the portfolio is Town Center Colleyville, a 172,289-square-foot retail center in Colleyville, Texas, public records show. The five-building retail center came online in 2003 at 5505 Colleyville Blvd., on a 17-acre site.
Grocery-anchored assets keep attracting investors
Recent retail market trends highlight investors’ preference for stability and income durability. Grocery-anchored centers and other necessity-based retail continue to attract capital, due to their tenant demand and resilience.
Meanwhile, institutional buyers tend to be more selective, prioritizing properties in suburban locations that showcase strong demographics and potential for rent growth through active leasing. Overall, investors seek to pursue value-add strategies—be it through acquiring or repositioning assets—though well-performing retail centers maintain consistent investor interest.