A significant transaction in the retail real estate sector has concluded with the sale of a 10-property open-air retail portfolio for $395.5 million. The portfolio, spanning approximately 1.04 million square feet across Florida and South Carolina, was acquired by 11North Partners and Bain Capital from PGIM Real Estate. This deal highlights strong investor confidence in well-located, necessity-based retail centers.
Key Takeaways
- A 10-property open-air retail portfolio totaling 1.04 million square feet was sold for $395.5 million.
- The portfolio is located across Florida and South Carolina, with strong occupancy rates.
- Bain Capital and 11North Partners are the new owners, acquiring the assets from PGIM Real Estate.
Portfolio Details
The expansive portfolio comprises ten strategically located open-air retail centers. These properties are situated in affluent trade areas with robust demographics, boasting an average household income of over $101,000 within a three-mile radius. The combined properties offer more than one million square feet of gross leasable area and maintained an impressive occupancy rate exceeding 91.6% at the time of sale. Seven of the centers are anchored by Publix, a leading grocery chain, and feature a diverse mix of national, regional, and daily-needs tenants.
Strategic Locations and Tenants
The acquired centers are spread across desirable submarkets in Florida, including Plantation, Sunrise, Boca Raton, Orlando, Tampa, Miramar, Poinciana, and Lake Worth. In South Carolina, the portfolio includes a key asset in Charleston. This geographic concentration in high-growth areas is a significant draw for investors. The tenant roster includes well-known brands such as Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s, underscoring the daily-needs and convenience appeal of these retail hubs.
Investor Confidence and Market Outlook
Danny Finkle of JLL Capital Markets noted the rarity of acquiring such a high-quality and scaled portfolio in desirable Southeast markets, emphasizing the sustained 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, in-demand communities benefiting from demographic shifts like lifestyle migration and an aging population. Martha Kelley of Bain Capital Real Estate echoed this sentiment, stating the acquisition aligns with their thematic investment approach 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 with the aim of acquiring and operating open-air retail centers across the U.S. and Canada. This acquisition follows their recent purchase of three lifestyle retail centers in Oklahoma City, demonstrating their continued momentum in high-growth markets. Their combined portfolio now includes grocery-anchored assets featuring prominent retailers like Whole Foods, Trader Joe’s, and Publix, with average grocery sales volumes around $1,000 per square foot.
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.