SAN ANTONIO-Sterling Organization, based in Palm Beach, FL, has claimed ownership of the 105,328-square-foot Grandview Shopping Center, paying RPD Catalyst $11.1 million for the 1970s property. The buyer relied on its Sterling Value Add Partners LP fund to acquire the retail asset, which is anchored by a Sprouts grocery store.
“We felt the value could be added in several places. Filling the vacancy, improving tenant quality and bringing rents up to the market rate are where the value can be added,” comments Sterling president and CEO Brian Kosoy. He adds that Grandview Shopping Center, at Interstate 10 and Callaghan Road, will benefit from some upfront capital expenditures that will include fresh paint, new signage, parking lot lighting and perhaps an opportunity to develop pad sites or outparcels.
“We watched that property for a long time,” Kosoy tells GlobeSt.com. “We have a relationship with someone in the area who thought it might become available, so we reached out to RPD Catalyst.” Kosoy explains that he spent a week last summer in Los Angeles and had lunch with the seller’s principal. “Over a one-week period, post lunch, we cut the deal,” he goes on to say.
Sterling is no stranger to San Antonio; the company owns Ingram Hills Shopping Center , an 80,307-square-foot shopping center at 6000 Ingram Rd., anchored by a La Fiesta. The firm also owns the master-planned, 1,270-acre Westover Hills at Route 51 and Westover Hills Boulevard. Furthermore, Sterling owns 12 properties throughout Texas, and Kosoy is not shy about saying he’d like to own more.
“San Antonio, in general, tends to attract less competition than the other major markets in Texas,” he explains, adding that one huge attraction is that San Antonio has a lot of infill locations, which is Sterling’s sweet spot. “It’s been a vibrant market, the cost-of-living is exceptional and we like the prospect of the city moving forward.”