Sterling Organization Acquires 277,057-SF Grocery-Anchored Portfolio in California and Hawaii with Eastdil Secured Savills
Sterling Organization, a West Palm Beach, Florida-based private equity real estate investment firm, has acquired a three-property, grocery-anchored shopping center portfolio totaling 277,057 square feet in California and Hawaii, the firm announced Sept. 28. The properties were acquired on behalf of Sterling United Properties, the firm's Core, grocery-anchored shopping center fund series. Eastdil Secured Savills advised on the transaction.
The portfolio includes Safeway Burlingame in Burlingame, Calif.; Pleasanton Gateway Shopping Center in Pleasanton, Calif.; and Kapahulu Shopping Center in Honolulu, Hawaii. Each property is anchored by a Safeway grocery store. Collectively, the three centers are 99% leased.
Portfolio Overview and Demographics
The three properties span two of the country's most supply-constrained coastal markets. Portfolio trade area demographics average more than 124,000 residents within a three-mile radius, with average annual household incomes exceeding $222,000.
Jordan Fried, Principal at Sterling Organization, described the transaction as a rare opportunity to add what the firm views as trophy assets to its growing fund series.
"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," Fried said. "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."
Bob Dake, Principal at Sterling Organization, added that the portfolio's fundamentals align with the firm's investment strategy for the SUP fund series.
"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," Dake said.
Property-by-Property Breakdown
Safeway Burlingame — Burlingame, California
Safeway Burlingame is a 70,174-square-foot, 100%-leased shopping center located in downtown Burlingame on the San Francisco Peninsula, at 1420–1450 Howard Avenue and 249 Primrose Road. The property is anchored by a Safeway and includes national retailers such as Union Bank, AT&T, StretchLab, Five Guys Burgers and Fries, Drybar, and Great Clips. The center's trade area encompasses approximately 111,000 residents within a three-mile radius with average household incomes exceeding $272,000 per year.
Pleasanton Gateway Shopping Center — Pleasanton, California
Pleasanton Gateway Shopping Center is a 128,275-square-foot, 99%-leased center located in Pleasanton's Tri-Valley submarket within the San Francisco Metropolitan Statistical Area. Anchored by Safeway, the center's tenant roster includes CVS, Wells Fargo, Starbucks, Panda Express, and The Habit Burger Grill. Approximately 66,000 residents live within a three-mile radius of the property, with average household incomes exceeding $259,000.
Kapahulu Shopping Center — Honolulu, Hawaii
Kapahulu Shopping Center is a 78,608-square-foot, 97%-leased center situated along Honolulu's Kapahulu corridor between Waikiki and downtown Honolulu. The property is anchored by a Safeway and includes AT&T, Panda Express, and Supercuts among its tenants. The center draws from a trade area of approximately 196,000 residents within three miles, with average annual household incomes exceeding $137,000. The acquisition represents Sterling's first investment in Hawaii, extending the firm's footprint into a market characterized by limited land availability and significant barriers to new development.
Strategic Context and Platform Scale
The three properties were acquired under Sterling's Core investment strategy, with the firm emphasizing high occupancy, essential-use tenancy, and land-constrained submarkets as key investment attributes. Each center's Safeway anchor provides daily-needs retail traffic, while the surrounding tenant mixes span financial services, food and beverage, and personal services.
With the addition of these three shopping centers, Sterling Organization and its affiliates now own 83 properties across various funds and investment vehicles, encompassing more than 15 million square feet and exceeding $4 billion in gross asset value. The acquired portfolio represents approximately 1.8% of the platform's reported square footage.
Sterling Organization is a vertically integrated firm specializing in retail real estate assets across the United States, with its headquarters in West Palm Beach, Florida, and offices nationwide.
Sources
Sterling Organization press release via PR Newswire, Sept. 28, 2026