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. This strategic acquisition, totaling approximately 1.04 million square feet, underscores the growing investor confidence in well-located, necessity-based retail centers.
Key Takeaways
- A 10-property open-air retail portfolio across Florida and South Carolina has been sold for $395.5 million.
- The portfolio comprises approximately 1.04 million square feet and boasts high occupancy rates.
- Bain Capital and 11North Partners are the acquiring entities, highlighting their focus on the open-air retail sector.
Portfolio Overview
The acquired portfolio consists of ten open-air retail centers strategically located in affluent trade areas with strong demographic profiles. The properties are situated in key Florida markets including Plantation, Sunrise, Boca Raton, Orlando, Tampa, Miramar, Poinciana, and Lake Worth, as well as Charleston, South Carolina. This diverse geographic spread allows the new owners to tap into multiple high-growth regions.
Strong Occupancy and Tenant Mix
The portfolio demonstrates impressive performance with an overall occupancy rate exceeding 91.6%, and in some reports, over 93 percent. A significant portion of the centers are anchored by Publix, a highly reputable grocery chain, alongside a strong mix of national, regional, and daily-needs tenants. These include well-known brands such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s, ensuring consistent foot traffic and tenant demand.
Strategic Investment Rationale
This acquisition aligns with Bain Capital Real Estate and 11North Partners’ strategy to invest in open-air retail assets that benefit from long-term consumer demand drivers and demographic shifts, particularly lifestyle migration towards the Southeast. The partners are focused on acquiring and operating high-quality, necessity-based retail centers in high-conviction markets. The portfolio’s strong fundamentals, desirable locations, and limited new retail supply contribute to its appeal.
About the Acquirers
Bain Capital Real Estate, formed in 2018, focuses on investments in sectors driven by enduring secular trends. They leverage deep industry expertise and a global platform to drive operational improvements. 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 through a combination of industry expertise and strong relationships.
Transaction Details
The transaction was facilitated by JLL Capital Markets, who represented the seller, PGIM Real Estate. The deal, valued at $395.5 million, highlights the robust investor appetite for well-positioned retail assets in resilient markets. The joint venture between Bain Capital and 11North Partners was established in April 2024 with the specific aim of targeting open-air retail assets with a high concentration of necessity-based tenancy.