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West Palm Beach, FL, — Sterling Organization, a vertically integrated private equity real estate investment firm, has announced the acquisition of a two-building, high street retail portfolio located along Melrose Avenue in West Hollywood, CA – one of L.A.’s premier retail corridors. The portfolio was purchased on behalf of Sterling Organization’s third institutional Value-Add Fund, Sterling Value Add Partners III, LP (“SVAP III”), for $35.0 million.
The buildings are both situated at the confluence of Melrose Avenue, Melrose Place and North Orlando Avenue, with a 3,275 sq. ft. single tenant building on the north corner and a 21,379 sq. ft. multi-level, multi-tenant building on the south corner. The Melrose Avenue corridor is a pedestrian-friendly retail street that is a highly desirable location for leading lifestyle and luxury brands. A representative sample of retailers and restaurants calling this corridor home include: The Row, Vince, Waterworks, Chloe, Ink Sack, Fig & Olive and the new Nordstrom LOCAL concept store. Over 284,000 people live within a three-mile radius of the properties, where the average household income is over $125,000.
“Tenants in the supply constrained Melrose Avenue retail corridor are at the leading edge of exhibiting new approaches for brands to adapt to a digital world while keeping the absolutely necessary brick-and mortar presence relevant and fresh.” said Brian Kosoy, Managing Principal, President and CEO of Sterling Organization. “We believe these two urban, high street properties represent a solid addition to our growing and diverse SVAP III fund portfolio. The assets are exceptionally located and highly visible which should present our leasing team with the opportunity to tap into a wave of innovative retailers seeking exceptional branding opportunities while at the same time meeting our value-add investment goals via lease-up of the properties,” he added.
This two-property portfolio represents Sterling Organization’s sixth and seventh investments on behalf of the $497.0 million SVAP III fund. With the addition of these two assets, the Palm Beach, FL-based firm, along with its principals and investment partners now own 54 properties from coast to coast, comprising of more than 10 million square feet of primarily retail real estate in major MSAs approaching $2 billion in value.
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About Sterling Organization
Sterling Organization is a vertically integrated private equity real estate firm that has an established track record of providing risk-adjusted returns to its partners, in both relative and absolute terms. The company’s national platform is focused on investing in retail real estate assets across the risk spectrum in major markets within the United States on behalf of Sterling’s principals in partnership with the highest quality institutional investors. Sterling Organization is headquartered in West Palm Beach, FL.