Sterling Organization Acquires Three Grocery-Anchored Shopping Centers Totaling 277,057 Square Feet in California and Hawaii

WEST PALM BEACH, Fla., Sept. 28, 2026 /PRNewswire/ -- Sterling Organization, a West Palm Beach, Florida-based private equity real estate investment firm focused on the retail sector, today announced the acquisition of a three-property Core, grocery-anchored shopping center portfolio totaling 277,057 square feet. The properties were acquired on behalf of Sterling's Core, grocery-anchored shopping center fund series, Sterling United Properties (SUP). The portfolio includes two properties in the San Francisco Bay area, Safeway Burlingame in Burlingame, Calif. and Pleasanton Gateway Shopping Center in Pleasanton, Calif., along with Kapahulu Shopping Center in Honolulu, Hawaii. Collectively 99% leased, each property is anchored by a high-performing Safeway grocery store and is well positioned within an affluent and densely populated trade area. The centers all benefit from strong real estate fundamentals in land-constrained submarkets, with portfolio trade area demographics averaging more than 124,000 residents with average annual household incomes exceeding $222,000 within a three-mile radius.

"This portfolio acquisition presented a phenomenal and rare opportunity to add what we believe are three super-core trophy properties to our growing Sterling United Properties fund series. Each shopping center is difficult-to-replicate, and all sit on sites within some of the country's most land-constrained and desirable trade areas. We expect the portfolio will continue to generate consistent, predictable, and growing cash flow for the benefit of the fund and our investor partners," said Jordan Fried, Principal at Sterling Organization. "We would like to thank Chris Hoffmann and the entire team at Eastdil Secured Savills for their professionalism and assistance in making this transaction a smooth and efficient experience for all involved."

"The portfolio aligns well with our investment strategy for the SUP series of funds as it combines strong, fundamentally sound real estate with defensive characteristics where tenant demand should continue to outpace the supply of available space at each property and within their respective submarkets. We look forward to leveraging Sterling's leasing and asset management platforms to support and augment the continued solid and consistent cash flow performance of each property," added Bob Dake, Principal at Sterling Organization.

Safeway Burlingame

• Safeway Burlingame is a 70,174-square-foot, 100%-leased, grocery-anchored shopping center located in downtown Burlingame on the San Francisco Peninsula. The property is anchored by a high-volume Safeway and houses a diverse mix of national retailers including Union Bank, AT&T, StretchLab, Five Guys Burgers and Fries, Drybar, and Great Clips. The center serves an affluent community situated between the city of San Francisco and Silicon Valley and benefits from over 111,000 residents living within a three-mile radius with average household incomes exceeding $272,000 per annum.

Pleasanton Gateway Shopping Center

• Pleasanton Gateway Shopping Center is a 128,275-square-foot, 99%-leased grocery-anchored shopping center located in Pleasanton, an affluent suburban San Francisco Metropolitan Statistical Area (MSA) in the Tri-Valley region. Anchored by Safeway, the center features a diverse mix of national retailers, restaurants, and service providers, including CVS, Wells Fargo, Starbucks, Panda Express, and The Habit Burger Grill. The property serves a highly affluent trade area, with approximately 66,000 residents living within a three-mile radius of the property with average household incomes exceeding $259,000.

Kapahulu Shopping Center

• Kapahulu Shopping Center is a 78,608-square-foot, 97%-leased grocery-anchored shopping center located along Honolulu's Kapahulu corridor between Waikiki and downtown Honolulu. The property is anchored by a high-performing Safeway and includes national retailers such as AT&T, Panda Express, and Supercuts. The center serves nearby residential neighborhoods, the University of Hawaii community, and one of the state's most active visitor corridors. It draws from a densely populated trade area with approximately 196,000 residents living within a three-mile radius that have an average annual household income exceeding $137,000. The acquisition marks Sterling's first investment in Hawaii and expands the firm's footprint into a market characterized by limited land availability and significant barriers to development.

About Sterling Organization

Sterling Organization is a vertically integrated private equity real estate investment firm specializing in retail real estate assets across the United States. With the addition of these shopping centers, Sterling Organization and its affiliates now own 83 properties across various funds and other investment vehicles, encompassing more than 15 million square feet and exceeding $4 billion in gross asset value. The firm is headquartered in West Palm Beach, Florida and has offices nationwide. For leasing opportunities, contact [email protected].

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SOURCE Sterling Organization