A significant 10-property open-air retail portfolio, spanning approximately 1.04 million square feet across Florida and South Carolina, has been sold for $395.5 million. The transaction was facilitated by JLL Capital Markets, representing the seller, PGIM Real Estate. The acquisition was made by 11North Partners and Bain Capital, marking a substantial investment in high-growth Southeast markets.
Key Takeaways
- A portfolio of 10 open-air retail centers totaling 1.04 million square feet was sold for $395.5 million.
- The properties are located in affluent trade areas across Florida and South Carolina.
- The portfolio boasts a high occupancy rate, with many centers anchored by Publix.
- The acquisition by 11North Partners and Bain Capital highlights investor confidence in necessity-based retail.
Strategic Acquisition in Thriving Markets
Bain Capital and 11North Partners have acquired a portfolio of ten open-air retail centers, with most anchored by Publix, for approximately $395 million. This strategic transaction underscores the joint venture’s focus on acquiring and operating open-air retail centers in high-growth U.S. and Canadian markets. The portfolio’s locations are strategically situated in thriving Florida submarkets, including Fort Lauderdale, Orlando, Tampa, and Palm Beach, as well as Charleston, South Carolina.
Portfolio Highlights
The 10 properties collectively span over one million square feet of gross leasable area and maintain an in-place occupancy exceeding 93 percent. Seven of these centers are anchored by Publix, a leading grocery chain, and the portfolio features a strong mix of national, regional, and daily-needs tenants. Notable tenants include Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. The assets are situated in desirable, high-barrier communities such as Boca Raton, Sawgrass, Plantation, and Charleston, SC, areas characterized by strong household demographics, limited new retail supply, and sustained population growth.
Investor Confidence in Necessity-Based Retail
Danny Finkle of JLL Capital Markets noted the rarity of acquiring such a high-quality and scaled portfolio in desirable Southeast markets, emphasizing the strong investor demand for top-tier retail centers with stable occupancy and strong anchor tenants. Brian Harper of 11North Partners highlighted the opportunity to integrate their platform into strong communities benefiting from demographic shifts, including lifestyle migration and an aging population. Martha Kelley of 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.
About the Acquirers
Bain Capital Real Estate and 11North Partners formed a strategic joint venture in April 2024, targeting open-air retail assets with a high concentration of necessity-based tenancy and long-term consumer demand drivers. This acquisition follows their recent purchase of three open-air lifestyle retail centers in Oklahoma City, demonstrating continued momentum in their investment strategy.
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.