Sterling Park Portfolio Realized at 2.3x Equity Multiple

Arborstone Capital Partners has completed the sale of the Sterling Park Portfolio, a three-building, 310,000-square-foot office campus in Raleigh, North Carolina, to an institutional core buyer. The exit generated a 24.6% IRR and a 2.3x equity multiple for fund investors.

Acquired in 2018 at a distressed basis from a fund in wind-down, the campus was repositioned for medical and professional tenancy. Occupancy rose from 71% to 97% over the hold, and net operating income grew 64%.

“Sterling Park validates our reposition-and-exit strategy,” said David Okafor, Partner. “Buying complexity at the right basis, executing a focused plan, and selling stabilized cash flow to core capital.”