A significant transaction has reshaped the retail landscape in the Southeast, with a 10-property open-air retail portfolio spanning Florida and South Carolina trading for $395.5 million. The portfolio, totaling approximately 1.04 million square feet, was acquired by 11North Partners and Bain Capital from PGIM Real Estate.
Key Takeaways
- Record Sale: A 10-property open-air retail portfolio in Florida and South Carolina has been sold for $395.5 million.
- Acquisition Team: The buyers are 11North Partners and Bain Capital.
- Seller: The seller was PGIM Real Estate.
- Portfolio Size: The combined properties encompass over 1 million square feet.
- High Occupancy: The portfolio boasts an impressive occupancy rate, exceeding 91.6%.
- Prime Locations: Properties are situated in affluent areas with strong demographic profiles.
Strategic Acquisition Bolsters Retail Presence
Bain Capital and 11North Partners have strategically expanded their footprint in high-growth markets with this acquisition. The portfolio is anchored by several Publix grocery stores, a testament to the centers’ necessity-based tenancy and appeal to daily needs shoppers. Other prominent tenants include Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s, highlighting a robust mix of national and regional brands.
Desirable Markets and Strong Demographics
The acquired properties are located in sought-after submarkets across Florida, including Fort Lauderdale, Orlando, Tampa, and Palm Beach, as well as Charleston, South Carolina. These areas are characterized by strong household incomes, limited new retail supply, and sustained population growth, making them highly attractive investment destinations. The average household income within a three-mile radius of the portfolio’s locations is reported to be $101,152.
Investor Confidence in Open-Air Retail
This transaction underscores the continued investor demand for high-quality, open-air retail centers, particularly those with strong anchor tenants and stable occupancy. Danny Finkle of JLL Capital Markets noted the rarity of acquiring a portfolio of this caliber and scale in desirable Southeast markets. Brian Harper of 11North Partners emphasized the opportunity to integrate their platform into strong communities benefiting from demographic shifts, such as lifestyle migration and an aging population.
About the Players
Bain Capital Real Estate, in partnership with 11North, focuses on acquiring and operating open-air retail centers across the U.S. and Canada. This acquisition follows their recent purchase of three lifestyle retail centers in Oklahoma City, reflecting a consistent strategy of targeting high-conviction markets. 11North Partners is a real estate investment firm dedicated to curating a diversified portfolio of retail investments, aiming to redefine the traditional approach to retail real estate.
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.