Bain Capital and 11North Partners have jointly acquired a significant portfolio of 10 open-air retail centers spanning Florida and South Carolina for $395.5 million. This strategic acquisition, totaling approximately 1.04 million square feet, focuses on high-demand, necessity-based retail locations, reinforcing the investors’ commitment to thriving Southeast markets.
Key Takeaways
- Acquisition Value: $395.5 million for 10 retail centers.
- Location: Florida and South Carolina.
- Total Area: Approximately 1.04 million square feet.
- Occupancy: High, exceeding 91.6% across the portfolio.
- Anchors: Many centers are anchored by Publix, alongside other national and daily-needs tenants.
Strategic Investment in High-Growth Markets
Bain Capital Real Estate and 11North Partners have expanded their strategic joint venture with the acquisition of this substantial retail portfolio. The 10 properties are strategically situated in affluent trade areas across Florida, including Plantation, Sunrise, Boca Raton, Orlando, Tampa, Miramar, and Poinciana, as well as Charleston, South Carolina. These locations are characterized by strong demographics, including high average household incomes, and benefit from significant population growth and lifestyle migration trends prevalent in the Southeast.
A Portfolio Anchored by Necessity Retail
The acquired portfolio boasts impressive occupancy rates, with one source reporting over 91.6% and another exceeding 93%. A key feature of this collection of open-air centers is the strong presence of necessity-based tenants. Seven of the centers are anchored by Publix, a leading grocery chain, and the portfolio includes a diverse mix of national and regional retailers such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. This focus on essential services and popular consumer brands underscores the resilience and enduring demand for these retail assets.
Investor Confidence in Southeast Retail
This transaction highlights the continued investor appetite for high-quality, well-located retail centers, particularly those with stable occupancy and strong anchor tenants. Danny Finkle of JLL Capital Markets noted the rarity of acquiring such a quality and scale of portfolio in desirable Southeast markets. Brian Harper of 11North Partners emphasized the opportunity to integrate their platform into communities benefiting from demographic shifts, while Martha Kelley of Bain Capital Real Estate pointed to the acquisition aligning with their thematic approach to investing in necessity-based retail in attractive growth regions.
About the Investors
Bain Capital Real Estate, formed in 2018, focuses on investments in sectors driven by long-term demand growth. The firm leverages its industry expertise and global platform to drive operational improvements and deliver value-added returns. 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 deep industry expertise and strong relationships.
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.