West Palm Beach, FL, April 09, 2019 (GLOBE NEWSWIRE) — Sterling Organization, a vertically integrated private equity real estate investment firm, has announced the sale of Pembroke Place to Longpoint Realty for $37.525 million. Pembroke Place, a 158,463-square-foot grocery-anchored shopping center in Pembroke Pines, FL (Broward County, FL MSA), is located approximately 12 miles southwest of downtown Fort Lauderdale and has an ideal straight-line configuration along Pines Boulevard, a primary east/west thoroughfare within one of Broward County’s largest and most successful retail concentrations. Casey Rosen and Dennis Carson of CBRE represented Sterling in the transaction.
Sterling Organization acquired Pembroke Place in November 2008; at the time of said acquisition, the property was a 276,874-square-foot Kmart and Sedano’s-anchored shopping center. In 2014, Renaissance Charter Schools subleased the freestanding Kmart building, and in November 2018, Sterling sold said freestanding, 114,912-square-foot building to Renaissance Charter Schools for $10.5 million. In February 2017, a Chase Bank outparcel was replatted and subsequently sold for $4.647 million. Total proceeds associated with the three Pembroke Place dispositions amounted $52.672 million.
At the time of sale, the property was 99% leased and anchored by a high-performing Sedano’s grocery store, Crunch Fitness and Vargas University. “With the benefit of hindsight, the outset of the GFC (Global Financial Crisis) was a tough time to be buying a shopping center, but through patience and creativity, our team was ultimately able to pull multiple value-creation levers to generate outsized returns on behalf of our partners over the 11 year investment hold period,” said Brian Kosoy, Managing Principal, President and Chief Executive Officer of Sterling Organization. “We wish Longpoint Realty luck with what we view as a very solid asset, that should have additional upside to be harvested.”
Sterling currently owns and operates a total of 51 properties across the country. Sterling is actively investing on behalf of two institutional funds – Sterling Value Add Partners III (“SVAP III”), which focuses on value-add real estate assets where the primary value is retail; and Sterling United Properties II (“SUP II”), which focuses on core/stabilized grocery-anchored shopping centers – which have a combined buying power of well over $1 billion. In total, Sterling Organization owns more than 10 million square feet of retail real estate across the U.S. approaching $2 billion in value.