Bain Capital and 11North Partners have jointly acquired a significant 10-property open-air retail portfolio spanning Florida and South Carolina for $395.5 million. The transaction, brokered by JLL Capital Markets, encompasses approximately 1.04 million square feet of prime retail space, boasting high occupancy rates and strong demographic appeal in affluent trade areas.
Key Takeaways
- Acquisition Value: $395.5 million
- Portfolio Size: 10 open-air retail centers totaling approximately 1.04 million square feet.
- Locations: Florida (Plantation, Sunrise, Boca Raton, Orlando, Tampa, Miramar, Poinciana, Lake Worth) and South Carolina (Charleston).
- Buyers: Bain Capital and 11North Partners.
- Seller: PGIM Real Estate.
- Occupancy: High, exceeding 91.6% across the portfolio.
- Anchor Tenants: Notably includes several Publix-anchored centers, alongside national brands like Bank of America, Chipotle, Starbucks, and Chick-fil-A.
Strategic Investment in High-Growth Markets
The newly acquired portfolio is strategically positioned in desirable Southeast markets known for their robust population growth and strong household incomes, averaging over $101,000 within a three-mile radius of the properties. This acquisition aligns with Bain Capital Real Estate and 11North’s strategy to invest in necessity-based, open-air retail centers that benefit from long-term consumer demand drivers.
Danny Finkle of JLL Capital Markets highlighted the rarity of acquiring such a high-quality and scaled portfolio in these sought-after markets, emphasizing the strong investor demand for well-anchored, stable retail centers. Brian Harper, Founder and Managing Partner of 11North, noted the opportunity to integrate their platform into communities experiencing significant demographic shifts, including lifestyle migration and an aging population.
A Portfolio Anchored by Strong Tenancy
Seven of the ten centers are anchored by Publix, a leading grocery chain, with the portfolio also featuring a diverse mix of national, regional, and daily-needs tenants. This strong tenancy, combined with high occupancy rates exceeding 93% according to Bain Capital, underscores the resilience and appeal of these open-air retail assets. The portfolio’s locations in high-barrier, desirable communities like Boca Raton and Charleston, SC, further enhance its investment value due to limited new retail supply and sustained population growth.
This acquisition follows Bain Capital Real Estate and 11North’s recent joint venture purchase of three open-air lifestyle retail centers in Oklahoma City, signaling continued momentum for their platform focused on acquiring and operating open-air retail centers across the U.S. and Canada. The combined portfolio now includes grocery anchors such as Whole Foods, Trader Joe’s, and Publix, with average grocery sales volumes around $1,000 per square foot.
Sources
- 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.
- Bain Capital and 11North Partners Acquire Portfolio of 10 Open-Air Retail Centers Across Florida and South
Carolina, Bain Capital.