PALM BEACH, FL—The Sterling Organization reports the final closing of its second discretionary closed end real estate fund—Sterling Value Add Partners II, LP. The fund exceeded its fundraising target and raised commitments of $311 million.

The locally-based privately owned real estate investment and services firm states that the fund's original target was $275 million. With leverage, Sterling Value Add Partners II, LP has more than $1 billion of buying power, Sterling officials say. Commitments were made by a diverse investor base that includes domestic endowments, foundations, private and public pension plans, fund of funds and family offices, the company states.

The fund will target grocery-anchored shopping centers, power centers, enclosed malls, mixed-use properties and urban retail assets in major markets across the United States. Sterling Organization's first fund, Sterling Value Add Partners (SVAP I), closed in December 2012 with total capital commitments of $138 million.

“It is extremely gratifying to have both continued support from our SVAP I institutional partners and new relationships with a group of well-respected institutional investors as we seek to execute our strategy for SVAP II,” says Brian D. Kosoy, managing principal, president and CEO of Sterling Organization. “We look forward to drawing upon our investment and management experience to uncover opportunities that will continue to maximize value for our investors.”