Sterling Organization, a vertically integrated private equity real estate firm whose national platform is focused on investing in LAST HOUR® consumer fulfillment and distribution real estate assets, has announced the sale of two California properties, Olivera Crossing in the San Francisco MSA and 8379 Melrose Avenue in West Hollywood (Los Angeles MSA), for a combined $36.85 million.
Olivera Crossing, a 47,571 square foot neighborhood shopping center anchored by Planet Fitness, Starbucks and Taco Bell, was acquired on behalf of Sterling’s institutional fund Sterling Value Add Partners II, LP (“SVAP II”) in May 2016 for $11.98 million. During its hold period, Sterling was able to increase occupancy at the property by upwards of 20%, filling vacancy with a mix of national, regional, and local tenants. The center was sold to Dollinger Olivera Associates LP, an active investor in the Bay area, on March 25, 2022 for $17.65 million.
8379 Melrose Avenue was acquired on behalf of Sterling’s institutional fund Sterling Value Add Partners III, LP (“SVAP III”) for $14.75 million in July 2019. This property was purchased as part of a two-building, high-street retail portfolio located along Melrose Avenue in West Hollywood, CA, one of L.A.’s premier retail corridors. Following acquisition, Sterling filled the building with Casper, an e-commerce mattress retailer seeking a flagship brick-and-mortar location. On April 15, 2022, 8379 Melrose Avenue was sold for $19.20 million to Crown Equity.
“We are very pleased with our team’s wire to wire execution of both the Olivera Crossing and 8379 Melrose Avenue deals in California,” said Jordan Fried, a Principal of Sterling Organization. “These investments showcase the outstanding job our team has done executing our business plans, with both investments exceeding target returns,” added Fried.
Sterling Organization owns and manages 70 properties throughout the United States exceeding 11.5 million square feet and approaching $2.4 billion in value.