WOODBRIDGE, VA–Sterling Organization in Palm Beach, Fla., has sold the Market at Opitz Crossing, a 157,724-square foot PriceRite-anchored shopping center that it owned for three-and-a-half years. The company realized a gross IRR of more than 40% even with some modest leverage placed on the asset, according to CEO Brian Kosoy.

Here is how this seemingly modest deal breaks down.

  1. In November 2013 Sterling's institutional fund Sterling Value Add Partners acquired the asset for $17.75 million on behalf of its equity partners.
  2. During Sterling's ownership, a new Chipotle Mexican Grill outparcel building was added and the occupancy of the shopping center increased from approximately 77% to 96%.
  3. Klein Enterprises, a Baltimore-area real estate development firm makes its third acquisition in Virginia, snapping up Market at Opitz Crossing for $29.25 million — thus delivering a gross equity multiple of more than 2.7x to Sterling Organization.

Geoffrey Millerd and Mat Adler of Newmark Knight Frank represented the Sterling-managed fund in the sale. Eastern Union's Marc Tropp arranged financing for Klein Enterprises, via an Apple Federal Credit Union loan.

And now the story turns to Klein Enterprises. The company began expanding into Virginia in 2014 with the development of Stafford Corner. In 2016 it acquired Pleasant Valley Shopping Center. “Our acquisition is a prime example of our expanding geographic footprint, and we continue to remain focused on bringing our multigenerational investment and management experience to areas throughout the Mid Atlantic,” president Daniel Klein says in a prepared statement.

Save

Save

Save

WOODBRIDGE, VA–Sterling Organization in Palm Beach, Fla., has sold the Market at Opitz Crossing, a 157,724-square foot PriceRite-anchored shopping center that it owned for three-and-a-half years. The company realized a gross IRR of more than 40% even with some modest leverage placed on the asset, according to CEO Brian Kosoy.

Here is how this seemingly modest deal breaks down.

  1. In November 2013 Sterling's institutional fund Sterling Value Add Partners acquired the asset for $17.75 million on behalf of its equity partners.
  2. During Sterling's ownership, a new Chipotle Mexican Grill outparcel building was added and the occupancy of the shopping center increased from approximately 77% to 96%.
  3. Klein Enterprises, a Baltimore-area real estate development firm makes its third acquisition in Virginia, snapping up Market at Opitz Crossing for $29.25 million — thus delivering a gross equity multiple of more than 2.7x to Sterling Organization.

Geoffrey Millerd and Mat Adler of Newmark Knight Frank represented the Sterling-managed fund in the sale. Eastern Union's Marc Tropp arranged financing for Klein Enterprises, via an Apple Federal Credit Union loan.

And now the story turns to Klein Enterprises. The company began expanding into Virginia in 2014 with the development of Stafford Corner. In 2016 it acquired Pleasant Valley Shopping Center. “Our acquisition is a prime example of our expanding geographic footprint, and we continue to remain focused on bringing our multigenerational investment and management experience to areas throughout the Mid Atlantic,” president Daniel Klein says in a prepared statement.

Save

Save

Save

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.

erikamorphy

Retail
Washington, DC