Both Bain Capital and 11North Partners have teamed up again to make another purchase in the open-air retail space. This time, the two paid about $300 million for a five-property portfolio that's located in the Sun Belt.
The assets are positioned in the states of California, Florida, Virginia and Texas. Specific cities that the 757,000 square foot portfolio sits in include Sugar Land, TX, Altamonte Springs, FL, Falls Church, VA and Carlsbad, CA. The open-air centers are anchored by the following retail brands: Trader Joe's, Walmart, Costco, Harris Teeter and Equinox. All of which, the anchor sales per square foot come in greater than $900.
The tenants at the properties are involved in fitness, food, service, medical and those providing necessities that maintain low tenant health ratios. Occupancy in the portfolio averages more than 93 percent.
Importantly, the joint venture partners noted in a statement that retail fundamentals are strong in those submarkets that are attracting wealth, with the average household income coming in at almost $132,000.
The move comes on the heels of Bain Capital and 11North Partners' $1.6 billion capital raise in December, which supports their continued venture of investing in open-air retail centers. This gave them a total of $2 billion of investible equity.
The two have now combined to build an 18-asset portfolio since forming the JV in April 2024. One of their most recent acquisitions included the purchase of a 1.1 million square foot portfolio in the Southeast for $395 million, as previously reported by GlobeSt. Today's five-property portfolio announcement builds on Bain Capital and 11North Partners' strategy of targeting top-tier properties, surrounded by favorable demographics.
"These assets align squarely with our strategy of building a portfolio of institutional quality, open-air centers, anchored by best-in-class necessity and lifestyle tenants that serve as cornerstones of their communities. Each asset was underwritten using our proprietary data-driven framework, which allows us to evaluate markets, submarkets, and individual assets with a level of precision and conviction we believe is differentiated in this sector," Martha Kelley, managing director at Bain Capital, said of the latest acquisition move.
"Following our successful joint capital raise in December, our platform is well capitalized to continue scaling with discipline, and partnering shoulder-to-shoulder with 11North gives us the retail investment and operational expertise to create lasting value for our investors and the communities these centers serve."
The JV is focused not only on the U.S. — but Canada as well. The partnership has deployed almost $1 billion in capital since the launch.
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