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 approximately $395 million. This strategic acquisition, primarily anchored by Publix supermarkets, underscores the partners’ focus on high-growth, necessity-based retail markets.
Key Takeaways
- Acquisition Value: Approximately $395 million.
- Portfolio Size: Ten open-air retail centers totaling over one million square feet.
- Location: Strategically located across Florida (Fort Lauderdale, Orlando, Tampa, Palm Beach) and Charleston, South Carolina.
- Anchors: Seven centers are anchored by Publix, with a strong mix of national and daily-needs tenants.
- Occupancy: Exceeds 93% in-place occupancy.
- Partnership Focus: Continues the joint venture’s strategy of acquiring and operating open-air retail centers in the U.S. and Canada.
Strategic Expansion in High-Growth Markets
The newly acquired portfolio comprises ten well-located retail centers, with seven featuring Publix as a primary anchor. The properties are situated in desirable communities known for strong demographics, limited new retail supply, and consistent population growth. This includes key Florida submarkets like Fort Lauderdale, Orlando, Tampa, and Palm Beach, as well as Charleston, South Carolina.
The ten centers are:
- Sawgrass Square
- Plantation Promenade
- Miramar Commons
- Rolling Oaks
- Promenade at Poinciana
- Solivita Marketplace
- New Tampa Center
- Lake Worth Plaza
- Garden Shops at Boca
- Point Hope Commons
Collectively, these properties offer over one million square feet of gross leasable area and boast an occupancy rate exceeding 93%. The tenant mix features a strong presence of national, regional, and daily-needs retailers such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s, reinforcing the centers’ essential nature.
Investment Rationale and Future Outlook
Brian Harper, Founder and Managing Partner of 11North, highlighted the opportunity to integrate their platform into robust communities experiencing significant demographic shifts, including lifestyle migration and an aging population. He noted the high performance of the portfolio, anchored by Publix and complemented by top-tier national retailers, adding to their existing portfolio which includes Whole Foods and Trader Joe’s. Average grocery sales volumes across their combined portfolio are approximately $1,000 per square foot, indicating the quality and resilience of these centers.
Martha Kelley, Managing Director at Bain Capital Real Estate, echoed this sentiment, stating that the acquisition aligns perfectly with their thematic investment approach in open-air, necessity-based retail. She emphasized the strong fundamentals and attractive growth region, reinforcing their commitment to building a high-quality portfolio with 11North in markets with long-term conviction.
The strategic joint venture between Bain Capital and 11North was established in April 2024 with the objective of acquiring open-air retail assets characterized by a high concentration of necessity-based tenancy and enduring consumer demand drivers. This latest acquisition marks a significant step in their ongoing momentum within high-growth markets.