Thursday, February 11, 2016
Sterling Organization Acquires 171,909 SF Westgate Shopping Center in Washington, D.C. MSA for $42.5 Million
FOR IMMEDIATE RELEASE
February 11, 2016 – PALM BEACH, FL – Sterling Organization, a vertically integrated private equity real estate investment firm headquartered in Palm Beach, FL, has announced the acquisition of Westgate Shopping Center, a grocery-anchored retail plaza located in Manassas, VA, a suburb of Washington, D.C. The asset was purchased in an off-market transaction from a subsidiary of Katz Properties via the firm’s institutional stabilized fund Sterling United Properties I, LP (“SUP”) for $42.5 million.
Westgate Shopping Center is a 171,909-square-foot shopping center anchored by Giant (Ahold), the No. 1 grocer in terms of market share in the Washington, D.C. MSA. The property is located at the southeast corner of Sudley Road (State Route 234) and Lomond Drive, approximately 25 miles west of downtown D.C. The center is 99% occupied by a mix of national, regional and locally owned businesses including CVS/pharmacy, Barnes & Noble, Total Wine, Pier 1 Imports, Panera Bread, Virginia ABC, Baja Fresh and Sleepy’s.
“We are pleased to add Westgate Shopping Center to our core/stabilized Sterling United Properties portfolio,” said Ed Senenman, Senior Managing Director of Investments and Portfolio Management for Sterling Organization. “Westgate is the most fundamentally sound property in the submarket, which should position the asset to perform well for the long term. We believe the property will always be the first choice for quality tenants looking to locate in Manassas’ Sudley Road corridor.”
Westgate Shopping Center was originally constructed in 1964 and recently renovated in 2012. Over 75,000 people live within a three-mile radius of the property, where the average household income is over $83,000. The property is Sterling Organization’s third in Northern Virginia, and its fourth acquisition in the greater D.C. market. (Most recently, Pasadena Crossroads in Pasadena, MD, was acquired via the firm’s Sterling Value Add Partners II fund in November.)
“The purchase of Westgate Shopping Center brings our investment total in the Washington, D.C. market to well over $100 million in the last couple of years. This transaction, like all of our other D.C. acquisitions, highlights our team’s ability to source and execute off-market opportunities in what is a very competitive market,” added Brian Kosoy, Managing Principal, President and CEO of Sterling Organization. “The property is a perfect addition to what is becoming a very solid portfolio, which our team is strategically assembling on behalf of our Sterling United Properties fund investors.”
# # #
About Sterling Organization
Sterling Organization is a vertically integrated private equity real estate firm that has an established track record of providing exceptional risk-adjusted returns to its partners, in both relative and absolute terms. The company’s national platform is focused on investing in value-add retail real estate assets and stabilized/core grocery-anchored shopping centers in major markets across the United States on behalf of Sterling’s principals in partnership with the highest quality institutional investors. Sterling Organization is headquartered in Palm Beach, Florida.