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 BACK TO NEWS |
01/09/2007 |
| STERLING AMERICAN PROPERTY ANNOUNCES THE CLOSE OF ITS $600 MILLION REAL ESTATE FUND, SAP V |
| $3 Billion of Acquisitions Anticipated in United States |
New York, NY – January 9, 2007 – Sterling American Property Inc. announced it has raised over $600 million and closed its fifth discretionary real estate fund, Sterling American Property V, L.P. (SAP V). The announcement was made by Senior Partners, Michael Katz, Richard Wilpon and Thomas Osterman, whom have since 1991 successfully acquired over $3 billion of real estate on behalf of Sterling American’s four prior funds.
The close of SAP V marks the beginning of the company’s $3 billion North American real estate acquisition campaign. SAP V is focused on commercial and residential assets, including ground-up development, conversions and real estate instruments, often in conjunction with strong regional joint venture partners.
Most recently, Sterling American concluded the investment period on it’s $286 Million SAP IV fund, acquiring more than $900 million in properties nationally over a four year period. Sterling American has acquired properties in 43 states over the last decade.
“We are delighted with the market’s response to the opportunity to invest with Sterling American,” Mr. Katz said. He noted that the fund was originally targeted at $450 Million, but was increased to $600 Million to meet market demand. “Our previous fund’s performance has exceeded many of our Investor’s expectations and we have seen many continue on with us in this new Fund”.
The fund includes commitments from over 75% of the previous funds existing investor base. SAP V is made up of 42% equity investments from individuals and 58% from institutional investors. The General Partners initiated the fund with a $170 Million commitment.
“Sterling’s commitment in this fund represents 25% of the equity raised”, noted Mr. Wilpon. “This level of equity demonstrates our confidence in the real estate market. We continue to view real estate as an integral part of any Investment Portfolio, offering stability, strong yields, and high overall returns.”
“With our fifth fund,” Mr. Osterman said, “we will continue to execute our proven investment strategy which benefits from our hands-on, value-added management and our capital strength. Our talented team of investment officers have made terrific deals for our Investors, executing aggressive and creative asset appreciation strategies.”
That team, which is headed by Sterling’s SVP Tarak Patolia, has already acquired commercial and residential real estate assets valued at over $330 million in SAP V. We have made acquisitions in primary markets such as Philadelphia and Chicago, as well as suburban markets and second-tier cities in N.J., Ohio, Kansas and Oklahoma”, said Mr. Patolia. “As we speak, armed with the capital from SAP V, our team of investment officers are traveling throughout the U.S. to acquire new value-added and market-driven assets.”
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