Bain Capital and 11North Partners have acquired a significant 10-property open-air retail portfolio spanning Florida and South Carolina for $395.5 million. The transaction, brokered by JLL Capital Markets, highlights strong investor confidence in well-located, necessity-based retail centers.
Key Takeaways
- A 10-property open-air retail portfolio totaling approximately 1.04 million square feet was sold for $395.5 million.
- The portfolio is strategically located across affluent trade areas in Florida and South Carolina.
- The acquisition was made by Bain Capital and 11North Partners, with JLL Capital Markets representing the seller.
- The centers boast high occupancy rates and are anchored by major retailers, including Publix.
Strategic Acquisition Bolsters Retail Footprint
Bain Capital Real Estate and 11North Partners have expanded their joint venture’s reach with the acquisition of ten open-air retail centers. This strategic move, valued at approximately $395 million, encompasses over one million square feet of gross leasable area. The portfolio is anchored by Publix in seven of the centers and features a diverse mix of national and regional tenants, including Bank of America, Chipotle, Starbucks, and Chick-fil-A.
Prime Locations and Strong Demographics
The acquired properties are situated in high-demand, desirable communities across Florida, including Fort Lauderdale, Orlando, Tampa, and Palm Beach, as well as Charleston, South Carolina. These markets are characterized by strong household demographics, limited new retail supply, and sustained population growth. The portfolio currently maintains an occupancy rate exceeding 93 percent, underscoring its appeal to both retailers and consumers.
Investor Confidence in Necessity-Based Retail
This transaction underscores the robust investor appetite for high-quality, open-air retail centers, particularly those anchored by grocery stores and offering daily-needs services. Danny Finkle of JLL Capital Markets noted the rarity of acquiring such a scaled portfolio in desirable Southeast markets, emphasizing the "insatiable investor demand for best-in-class, retail centers with strong anchor tenants and stable occupancy."
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.
Portfolio Highlights
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)