Sterling Organization's Retail Fund Surpasses Target With $600M Commitments

Sterling Organization, a private equity real estate investment management and services firm, has announced the final close of Sterling Value Add Partners IV, LP (SVAP IV). The fund secured $600 million in total capital commitments, surpassing its $500 million target and reaching its hard cap. SVAP IV will primarily focus on value-add grocery-anchored shopping centres, neighbourhood centres, and power centres.

The fund attracted investments from a diverse group of investors, including public and private pension plans, endowments and foundations, fund of funds, and family offices. "We would like to thank both our long-time partners and new partners for the trust they have placed in our team," said Brian D. Kosoy, Managing Principal and Chief Executive Officer of Sterling Organization.

Kosoy added, "After enduring challenging operational and capital markets conditions for brick-and-mortar retail from 2008 through 2021, we at Sterling are now very optimistic about the U.S. shopping centre business. We expect the recent operational tailwinds of the last couple of years will persist for at least the remainder of the decade. We intend to leverage our vertically integrated platform and team’s expertise while we seek to execute on behalf of our partners."

Adam L. Munder, a Principal of Sterling Organization, expressed gratitude for the support received. "We are deeply appreciative of our partners’ confidence in our team and their support of SVAP IV, particularly amidst an extremely challenging fundraising environment," he said.

As of this announcement, Sterling Organization and its affiliates manage assets exceeding $2 billion.

Sterling Organization is a vertically integrated private equity real estate firm focused on investing in retail and LAST HOUR® consumer fulfilment and distribution real estate assets across the risk spectrum in major U.S. markets. The firm is headquartered in West Palm Beach, FL, with regional offices located across the country.