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Market at Opitz Crossing Trades At 40% Gross IRR To Seller

WOODBRIDGE, VA--This is Klein Enterprises third deal in Virginia.

By Erika Morphy | erikamorphy | Updated on June 09, 2017

Market at Opitz Crossing

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.

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