T.J. Maxx anchors North Ranch Gateway, an 86,520 square foot shopping center in the Los Angeles suburb of Westlake Village, CA.
WESTLAKE VILLAGE, CA—Palm Beach, FL-based Sterling Organization has added a retail asset in this wealthy Los Angeles suburb for $35 million. The deal was the first purchase for a recently launched Sterling fund.
The firm has added the North Ranch Gateway, an 86,520-square-foot shopping center located at the intersection of Lindero Canyon Road and Thousand Oaks Boulevard to its portfolio. The property is anchored by T.J. Maxx. Its tenant roster includes Bank of America, Dunkin Donuts, Subway, Baja Fresh Mexican Grill, 9 Round Kickboxing, Mathnasium and Domino's Pizza. The property was 74% occupied upon acquisition.
Preston Fetrow and Sam Alison of CBRE brokered the transaction.
North Ranch Gateway was originally built in 1989 and recently underwent significant renovations, according to the Sterling Organization. The property was purchased on behalf of Sterling Organization's recently launched institutional fund, Sterling Value Add Partners III, LP.
In late July, the Sterling Organization reported it had closed its Sterling Value Add Partners III, LP with total capital commitments of $495 million. The fund exceeded its initial fundraising target of $450 million.
“We are pleased to kick off SVAP III with the acquisition of North Ranch Gateway,” says Brian Kosoy, managing principal, president and CEO of Sterling Organization. “North Ranch Gateway fits squarely in the center of our box and meets the criteria we are targeting for in our third value-add retail real estate investment fund, including strong demographics and excellent real estate fundamentals.”
He adds that Sterling's plan for the property is to grow the shopping center's income by leasing up the existing vacancy.
The Sterling Organization opened an office in Los Angeles less than three years ago and now owns five assets in California. The firm's most recent California transaction involved Sterling selling a property on Rodeo Drive in Beverly Hills less than 24-hours after acquisition.
The company and its principals own approximately 10 million square feet of primarily retail real estate approaching $2 billion in value.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
