Bain Capital and 11North Partners have announced the acquisition of a significant portfolio comprising ten open-air retail centers across Florida and South Carolina. The transaction, valued at approximately $395 million, strengthens the joint venture’s presence in high-growth markets and focuses on necessity-based retail.
Key Takeaways
- Bain Capital and 11North Partners acquired 10 open-air retail centers for $395 million.
- The portfolio spans over one million square feet and is 93% occupied.
- Seven centers are anchored by Publix, with other notable tenants including Bank of America, Chipotle, and Starbucks.
- The acquisition targets high-barrier, desirable communities with strong demographics and population growth.
- JLL facilitated the transaction and secured $260 million in financing.
Strategic Southeast Expansion
Bain Capital Real Estate and 11North Partners, a retail-focused investment platform, have joined forces to acquire a portfolio of ten open-air retail centers. The majority of these centers are anchored by Publix, a leading grocery chain. This strategic acquisition, valued at roughly $395 million, includes properties located in key Florida submarkets such as Fort Lauderdale, Orlando, Tampa, and Palm Beach, as well as Charleston, South Carolina.
A High-Quality, Occupied Portfolio
The acquired portfolio encompasses over one million square feet of gross leasable area and boasts an impressive in-place occupancy rate exceeding 93 percent. Seven of the ten centers feature Publix as their anchor tenant. The tenant mix is further diversified with a strong selection of national, regional, and daily-needs retailers, including Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. These assets are situated in sought-after communities known for their robust household demographics, limited new retail supply, and consistent population growth.
Investment Rationale and Future Outlook
Brian Harper, Founder and Managing Partner of 11North, highlighted the opportunity to establish the platform in strong communities benefiting from demographic shifts, including lifestyle migration and an aging population. He noted the expansion in Florida with this high-performing portfolio, complemented by top-tier national retailers. Martha Kelley, Managing Director at Bain Capital Real Estate, emphasized that the acquisition aligns with their thematic investment approach in open-air, necessity-based retail within attractive growth regions.
The joint venture between Bain Capital and 11North was formed in April 2024 with a focus on acquiring open-air retail assets with a high concentration of necessity-based tenancy and long-term consumer demand drivers. This latest acquisition follows their recent purchase of three open-air lifestyle retail centers in Oklahoma City, demonstrating continued momentum in their investment strategy.
Financing and Transaction Facilitation
JLL Capital Markets played a crucial role in facilitating this significant transaction. The firm also secured $260 million in debt financing for the 10-property portfolio, which totals 1.1 million square feet and is strategically positioned in key markets across Florida and South Carolina.
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. - JLL secures $260M financing for 10-property grocery-anchored portfolio, JLL.