Sterling Organization, headquartered in Palm Beach, Florida, has announced the acquisition of a two-property portfolio of shopping centers totaling 266,303 square feet of gross leasable area in the Chicago MSA. The portfolio—which consists of Hillside Town Center in Hillside, Illinois, and Prairie Market in Oswego, Illinois—was purchased on behalf of Sterling Organization’s institutional fund, Sterling Value Add Partners III, LP (“SVAP III”), for an undisclosed amount.
Hillside Town Center is located along Interstate 290 just south of the S. Mannheim Road interchange at Harrison Street in Hillside, a Chicago suburb situated 12 miles west of the city’s CBD. The 164,837-square-foot power center is shadow anchored by an unowned 185,000-square-foot Super Target. The acquired portion is anchored by Ross Dress for Less, HomeGoods, Michaels and Petco. Other national tenants include Skechers, Chase Bank, T-Mobile, Visionworks, GNC, GameStop, Sally Beauty, Panda Express and Jimmy John’s Gourmet Sandwiches. The property was developed in 2009.
Prairie Market is a 101,466-square-foot shopping center located along U.S. Route 34 and bifurcated by Fifth Street in Oswego, a far-west Chicago suburb. It is anchored by Aldi and PetSmart and includes 10 outparcels. The owned property is part of a larger regional power center that includes Walmart, Hobby Lobby, Burlington, Kohl’s, Dick’s Sporting Goods and Best Buy. The outparcel tenants at the property include Chase Bank, Burger King, Olive Garden, Fifth Third Bank, Firestone and Panda Express. Prairie Market was developed between 2007 and 2009.
“Hillside Town Center and Prairie Market—the second and third properties acquired via SVAP III, our latest value-add private equity fund—each exhibit excellent real estate fundamentals and are located in vibrant trade areas. We see potential to add value at both properties by pulling a myriad of levers. As always, our team will do everything in its power to execute on behalf of our investor partners,” said Brian Kosoy, managing principal, president and CEO of Sterling Organization.
With this acquisition, Sterling Organization currently owns eight properties totaling 1.9 million square feet in the Chicago MSA. In March, they purchased the former Bar Toma restaurant location just off Michigan Avenue in downtown Chicago, on behalf of a different fund.