HUNTINGTON, NY—The Sterling Organization has completed its second purchase in the New York metro area with the acquisition of grocery-anchored Huntington Square Plaza here.
The shopping center, which was built in 2002, was purchased on behalf of the Sterling Organization’s institutional core fund, Sterling United Properties I, LP (SUP I). Globest.com has learned that Sterling purchased the 116,200-square-foot property at 3124-3126 East Jericho Turnpike in East Northport for approximately $43 million. The shopping center, which sits on nearly 11 acres, is anchored by grocer Stop & Shop and Best Buy and is 100% leased.
“We are excited to have had the opportunity to make this investment, which is our first on Long Island. Huntington Square Plaza is anchored by two solidly performing retailers on long term leases, characteristics that fit the investment profile for SUP I,” says Ed Senenman, senior managing director of investments and portfolio management for Sterling Organization. “There is no doubt that this is quality real estate, with the trade area surrounding Huntington Square Plaza being densely populated and affluent. The property further features excellent fundamentals with visibility and access along the busy Jericho Turnpike commercial corridor.”
“Huntington Square Plaza is, we believe, another nice addition to our core/stabilized SUP I portfolio. We anticipate this asset will generate predictable and stable cash flow during our hold period for our investor partners,” adds Brian Kosoy, managing principal, president and CEO of the Sterling Organization.
Brokerage firm Holliday Fenoglio Fowler, LP marketed the property on behalf of an undisclosed seller. The HFF investment sales team that represented the seller included senior managing director Jose Cruz, managing director Kevin O’Hearn and senior directors Stephen Simonelli and Michael Oliver.
“The property was very well received in the market and the investment community valued the stability of the center,” Cruz says.
Huntington Square Plaza is the Sterling Organization’s second acquisition in the New York City MSA, and the seventh asset within the SUP I portfolio. The private equity firm and its principals own more than 9 million square feet of retail and other commercial real estate across the US at nearly $2 billion in value. Sterling also owns a former 84,180-square-foot former Kmart property in Lodi, NJ.
On Sept. 25th Sterling Organization announced it had sold the 103,000-square-foot Grandview Shopping Center in San Antonio, TX for $21.9 million and in June sold the Market at Opitz, a 157,724-square-foot shopping center in Woodridge, VA for $29.25 million. Also in June, Sterling purchased the 107,633-square-foot Palm Valley Marketplace in the Phoenix, AZ for $22.45 million.