A significant transaction has reshaped the Southeast retail landscape with the sale of a 10-property open-air retail portfolio for $395.5 million. The portfolio, spanning Florida and South Carolina, encompasses approximately 1.04 million square feet and boasts strong occupancy rates in affluent areas.
Key Takeaways
- Record-Breaking Sale: A 10-property open-air retail portfolio totaling 1.04 million square feet was sold for $395.5 million.
- Strategic Locations: The properties are situated in desirable trade areas across Florida and South Carolina, benefiting from strong demographic profiles.
- High Occupancy: The portfolio maintains an impressive 91.6% overall occupancy rate.
- Investor Demand: The deal highlights robust investor appetite for high-quality, well-occupied retail centers in growing markets.
A Lucrative Investment Opportunity
The 10-property portfolio, previously owned by PGIM Real Estate, was acquired by 11North Partners and Bain Capital. The properties are strategically located in affluent trade areas, evidenced by an average household income of $101,152 within a three-mile radius of the centers. This strong demographic foundation, coupled with a high occupancy rate of 91.6%, made the portfolio an attractive asset for investors.
Portfolio Highlights
The extensive portfolio includes a diverse range of properties across key Florida and South Carolina markets:
- Plantation Promenade (Plantation, Florida)
- Sawgrass Square I & II (Sunrise, Florida)
- Garden Shops at Boca (Boca Raton, Florida)
- Rolling Oaks (Orlando, Florida)
- New Tampa Center (Tampa, Florida)
- Miramar Commons (Miramar, Florida)
- The Promenade (Poinciana, Florida)
- Point Hope Commons (Charleston, South Carolina)
- Solivita Marketplace (Poinciana, Florida)
- Lake Worth 441 (Lake Worth, Florida)
Expert Facilitation and Market Insight
JLL Capital Markets, through its Investment Sales and Advisory team, represented the seller in this significant transaction. Senior Managing Director Danny Finkle, a co-lead of JLL’s US Retail Capital Markets team, noted the rarity of acquiring such a high-quality and large-scale portfolio in desirable Southeast markets. He emphasized that the deal underscores the persistent investor demand for premier retail centers anchored by strong tenants and stable occupancy.
Brian Harper, Founder and Managing Partner of 11North, commented on the strategic value of the acquisition, stating it allows them to establish a presence in robust communities experiencing significant demographic shifts, including lifestyle migration and an aging population. Bain Capital Real Estate, known for its value-added investment approach, and 11North Partners, focused on curating diversified retail investments, are poised to leverage their expertise in these dynamic markets.
Sources
- 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.
- 10-Property Open-Air Retail Portfolio Trades Hands for $395.5M in Florida and South Carolina, citybiz.