Bain Capital Real Estate and 11North Partners have jointly acquired a significant portfolio of ten open-air retail centers for approximately $395 million. The transaction, focused on high-growth markets, includes properties strategically located across Florida and South Carolina, many anchored by the prominent grocery chain Publix. This acquisition underscores the partners’ commitment to expanding their presence in necessity-based retail.
Key Takeaways
- Bain Capital Real Estate and 11North Partners acquired 10 open-air retail centers for $395 million.
- The portfolio spans over one million square feet with over 93% occupancy.
- Seven centers are anchored by Publix, with other national and daily-needs tenants.
- Locations include key Florida submarkets and Charleston, South Carolina.
- The deal aligns with the partners’ strategy of investing in necessity-based retail in high-conviction markets.
Strategic Acquisition in Growth Markets
The newly acquired portfolio comprises ten open-air retail centers, totaling over one million square feet of gross leasable area, with an impressive occupancy rate exceeding 93 percent. Seven of these centers boast Publix as their anchor tenant, complemented by a diverse mix of national, regional, and daily-needs retailers such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. The properties are situated in desirable, high-barrier communities including Fort Lauderdale, Orlando, Tampa, Palm Beach, and Charleston, South Carolina, areas characterized by strong demographics, limited new retail supply, and consistent population growth.
A Focus on Necessity-Based Retail
Brian Harper, Founder and Managing Partner of 11North, highlighted the strategic importance of embedding their platform in strong, in-demand communities benefiting from demographic shifts in the Southeast. He noted the expansion of their grocery-anchored portfolio, which now includes Whole Foods, Trader Joe’s, and Publix, with average grocery sales volumes around $1,000 per square foot. Martha Kelley, Managing Director at Bain Capital Real Estate, echoed this sentiment, stating the acquisition aligns with their thematic approach to investing in open-air, necessity-based retail in attractive growth regions.
Partnership Momentum
This acquisition follows the joint venture’s recent purchase of three open-air lifestyle retail centers in Oklahoma City, demonstrating continued momentum. The strategic partnership between Bain Capital Real Estate and 11North Partners, formed in April 2024, is dedicated to acquiring and operating open-air retail centers across the U.S. and Canada, with a focus on assets featuring a high concentration of necessity-based tenancy and long-term consumer demand drivers.
Sources
- Bain Capital and 11North Partners Acquire Portfolio of 10 Open-Air Retail Centers Across Florida and South
Carolina, Bain Capital. - 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.