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, facilitated by JLL Capital Markets, highlights strong investor demand for well-located, high-occupancy retail assets in the booming Southeast.
Key Takeaways
- Transaction Value: $395.5 million
- Portfolio Size: 10 open-air retail centers totaling approximately 1.04 million square feet.
- Locations: Throughout Florida and South Carolina.
- Acquirers: Bain Capital and 11North Partners.
- Seller: PGIM Real Estate.
- Occupancy: Impressive 91.6% overall occupancy.
- Demographics: Located in affluent trade areas with strong household incomes.
Strategic Acquisition in High-Growth Markets
The newly acquired portfolio comprises ten strategically located open-air retail centers, with a notable concentration in Florida’s thriving submarkets including Plantation, Sunrise, Boca Raton, Orlando, Tampa, Miramar, and Poinciana, alongside Charleston, South Carolina. This acquisition underscores the growing investor appetite for retail properties that benefit from strong demographic trends, including lifestyle migration and an aging population across the Southeast.
A Portfolio Anchored by Necessity and Convenience
Seven of the ten centers are anchored by Publix, a leading grocer, with the portfolio also featuring a robust mix of national, regional, and daily-needs tenants. These include prominent names like Bank of America, Chipotle, Starbucks, Chick-fil-A, Jersey Mike’s, and McDonald’s. The properties are situated in high-barrier, desirable communities known for their strong household demographics, limited new retail supply, and sustained population growth, contributing to an overall occupancy rate exceeding 91.6%.
Investor Confidence in Open-Air Retail
Danny Finkle of JLL Capital Markets noted the uniqueness of acquiring such a high-quality and 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 added that the transaction offers a compelling opportunity to establish their platform in strong, in-demand communities benefiting from significant demographic shifts. Martha Kelley from 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.
The Acquirers and Their Vision
Bain Capital Real Estate, formed in 2018, focuses on hard-to-access sectors driven by long-term demand trends. 11North Partners is a real estate investment firm dedicated to curating a diversified portfolio of retail investments. The joint venture between Bain Capital and 11North, established in April 2024, specifically targets open-air retail assets with a high concentration of necessity-based tenancy and long-term consumer demand drivers, aiming to deliver attractive risk-adjusted returns.
Sources
- 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.
- 10-Property Open-Air Retail Portfolio Trades Hands for $395.5M in Florida and South Carolina, citybiz.
- Bain Capital and 11North Partners Acquire Portfolio of 10 Open-Air Retail Centers Across Florida and South
Carolina, Bain Capital.