West Palm Beach – September 28, 2026 -- Sterling Organization has acquired a three-property, grocery-anchored shopping center portfolio totaling 277,057 square feet on behalf of its Sterling United Properties (SUP) fund series. The portfolio is 99% leased collectively and spans two California assets and one Hawaii property, each anchored by a Safeway supermarket.
Portfolio combines Bay Area and Honolulu assets across 277,057 square feet
The acquisition includes Safeway Burlingame, a 70,174-square-foot center that is 100% leased, and Pleasanton Gateway Shopping Center, a 128,275-square-foot property that is 99% leased, both in the San Francisco Bay Area. The third asset, Kapahulu Shopping Center in Honolulu, totals 78,608 square feet and is 97% leased, marking Sterling's first investment in Hawaii.
Trade areas average $222,000 in household income within three miles
Across the portfolio, trade areas average more than 124,000 residents and annual household incomes exceeding $222,000 within a three-mile radius. Safeway Burlingame draws from 111,000 residents with average incomes above $272,000, while Pleasanton Gateway serves roughly 66,000 residents earning above $259,000 annually. Kapahulu Shopping Center sits in a denser but lower-income corridor, with approximately 196,000 residents and average household incomes above $137,000, drawing on nearby residential neighborhoods, the University of Hawaii community, and the Waikiki visitor corridor.
Tenant rosters include AT&T, CVS, Wells Fargo and Five Guys
Beyond the Safeway anchors, the centers house national tenants including Union Bank, AT&T, StretchLab, Five Guys Burgers and Fries and Drybar at Burlingame; CVS, Wells Fargo, Starbucks, Panda Express and The Habit Burger Grill at Pleasanton Gateway; and AT&T, Panda Express and Supercuts at Kapahulu.
Jordan Fried, Principal at Sterling Organization, said the deal added "three super-core trophy properties" to the SUP fund series, citing the land-constrained, difficult-to-replicate nature of the sites. Bob Dake, also a Principal at Sterling, said the firm plans to apply its leasing and asset management platform to sustain cash flow performance across the three properties. Eastdil Secured Savills, led by Chris Hoffmann, advised on the transaction.
Deal lifts Sterling's holdings to 83 properties and $4 billion in gross asset value
With this acquisition, Sterling Organization and its affiliates now own 83 properties across various funds and investment vehicles, totaling more than 15 million square feet and exceeding $4 billion in gross asset value.