A significant transaction has reshaped the Southeast retail landscape with the sale of a 10-property open-air retail portfolio for $395.5 million. The collection of centers, spanning approximately 1.04 million square feet across Florida and South Carolina, was acquired by 11North Partners and Bain Capital.
Key Takeaways
- Transaction Value: $395.5 million
- Portfolio Size: 10 open-air retail centers, totaling 1.04 million square feet
- Locations: Florida and South Carolina
- Acquirers: 11North Partners and Bain Capital
- Seller: PGIM Real Estate
- Occupancy: 91.6% overall, with some sources reporting over 93%
- Anchor Tenants: Notably includes Publix grocery stores at several locations.
Strategic Acquisition in High-Growth Markets
The portfolio, previously owned by PGIM Real Estate, was represented by JLL Capital Markets. The acquisition by 11North Partners and Bain Capital highlights investor confidence in the enduring appeal of well-located, necessity-based retail centers. These properties are situated in affluent trade areas with strong demographic profiles, boasting an average household income of over $101,000 within a three-mile radius.
Diverse Portfolio Anchored by Strong Tenancy
The 10 properties included in the sale are:
- Plantation Promenade (Plantation, Florida)
- Sawgrass Square I & II (Sunrise, Florida)
- Garden Shops at Boca (Boca Raton, Florida)
- Rolling Oaks (Orlando, Florida)
- New Tampa Center (Tampa, Florida)
- Miramar Commons (Miramar, Florida)
- The Promenade (Poinciana, Florida)
- Point Hope Commons (Charleston, South Carolina)
- Solivita Marketplace (Poinciana, Florida)
- Lake Worth 441 (Lake Worth, Florida)
Seven of these centers are anchored by Publix, a highly desirable grocery tenant, complemented by a strong mix of national and regional retailers such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. This tenant mix ensures consistent foot traffic and daily needs shopping for the surrounding communities.
Investor Confidence in Open-Air 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 echoed this sentiment, viewing the acquisition as an opportunity to establish their platform in communities benefiting from significant demographic shifts and lifestyle migration across the Southeast.
Bain Capital Real Estate and 11North Partners formed a strategic joint venture in April 2024, specifically targeting open-air retail assets with a high concentration of necessity-based tenancy and long-term consumer demand drivers. This acquisition aligns perfectly with their investment strategy, focusing on high-growth regions with limited new retail supply and sustained population growth.