Kmart

The K-Mart in Herndon has sold to a new owner for $7 million.

The Kmart in Herndon now has a new owner.

Sterling Organization, a private equity real estate investment firm headquartered in Palm Beach, Fla., has announced the off-market acquisition of the Kmart at Herndon Centre for $7 million.

Kmart at Herndon Centre consists of 7.6 acres of land with an 84,180-square-foot building that is currently occupied by a Kmart store. It is unknown if Sterling will keep the current store or put in a new retailer.

Kmart is the shadow anchor to a larger, grocery-anchored shopping center called Herndon Centre, which was not part of the transaction. The shopping center is located along Herndon’s Elden Street, a thoroughfare which provides access to the Reston and Dulles Corridor via the Fairfax County Parkway. Over 145,000 people live within a 3-mile radius of the property, and the average household income is approximately $138,000. Kmart at Herndon Centre was originally developed in 1976. Businesses at Herndon Centre include MOM’s Organic Market, Big Lots, McDonald’s and Panera Bread.

“We are pleased to add another D.C. MSA asset to our portfolio,” said Brian Kosoy, Managing Principal, President and CEO of Sterling Organization. “The real estate fundamentals of — and the demographics surrounding — this property are nothing short of exceptional. The Herndon Kmart asset represents another example of our team’s ability to opportunistically source properties on an off-market basis. We feel confident that this investment should produce the returns we target on behalf of our SVAP II investors.”

Kmart at Herndon Centre is Sterling’s fifth asset in the greater D.C. market. Most recently, Westgate Shopping Center in Manassas was acquired via the firm’s Sterling United Properties I fund in February.

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