Bain Capital Real Estate and 11North Partners have jointly acquired a significant portfolio of ten open-air retail centers spanning Florida and South Carolina for $395.5 million. This strategic acquisition, totaling approximately 1.04 million square feet, enhances the partners’ presence in high-growth Southeast markets and strengthens their focus on necessity-based retail.
Key Takeaways
- Acquisition Value: $395.5 million for a 10-property retail portfolio.
- Location: Properties are situated across Florida and South Carolina.
- Occupancy: The portfolio boasts a high occupancy rate, exceeding 91.6% across both sources.
- Anchors: Many centers are anchored by major grocery retailers, including Publix, Whole Foods, and Trader Joe’s.
- Partnership: This acquisition is part of an ongoing joint venture between Bain Capital Real Estate and 11North Partners focused on open-air retail centers.
Portfolio Details and Strategic Significance
The acquired portfolio comprises ten open-air retail centers, strategically located in affluent trade areas with strong demographic profiles. Seven of the centers are anchored by Publix, a leading grocery chain, with other notable tenants including Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. This mix of national, regional, and daily-needs tenants contributes to the portfolio’s stability and appeal.
The properties are situated in desirable communities known for sustained population growth and limited new retail supply. Key locations include areas around Fort Lauderdale, Orlando, Tampa, Palm Beach in Florida, and Charleston in South Carolina. This strategic placement aligns with the partners’ investment thesis focused on high-growth, high-conviction markets.
Investment Strategy and Future Outlook
Bain Capital Real Estate and 11North Partners formed their strategic joint venture in April 2024 with the objective of acquiring and operating open-air retail centers across the U.S. and Canada. The partnership targets assets with a high concentration of necessity-based tenancy and strong long-term consumer demand drivers. This latest acquisition follows their recent purchase of three lifestyle retail centers in Oklahoma City, demonstrating continued momentum in their investment strategy.
Brian Harper, Founder and Managing Partner of 11North, highlighted the opportunity to embed their platform in strong, in-demand communities benefiting from demographic shifts in the Southeast. Martha Kelley, Managing Director at Bain Capital Real Estate, emphasized that the acquisition aligns with their thematic approach to investing in necessity-based retail in attractive growth regions. The combined portfolio now includes prominent grocery anchors like Whole Foods, Trader Joe’s, and Publix, underscoring the quality and durability of these centers.
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.