The investment firms Bain Capital and 11North Partners announced their joint venture acquisition of five open-air retail centers located across four states for approximately $300 million.
Collectively, the portfolio totals approximately 757,000 square feet and spans Carlsbad, California; Falls Church, Virginia; Altamonte Springs, Florida; and Sugar Land, Texas. The properties are anchored by Harris Teeter, Trader Joe’s, Walmart, Costco, and Equinox, with anchor sales per square foot in excess of $900.
The companies added the portfolio, with in-place occupancy exceeding 93%, feature mix of food, fitness, medical, service and other necessity tenants, with low tenant health ratios.
Brian Harper, founder and managing partner at 11North, stated, “Open-air, grocery-anchored retail continues to demonstrate some of the most compelling risk-adjusted fundamentals in the real estate landscape. We are acquiring high quality, irreplaceable assets in undersupplied markets at a basis that would be structurally difficult to replicate. The demographic quality across this portfolio, with nearly $132,000 average household income within three miles, is a direct reflection of where we choose to allocate capital. These assets were individually curated based on the team’s decades of investing across the country, coupled with a data driven foundation. With several billion of remaining dry powder, we will remain disciplined in how and where we invest.”
Martha Kelley, a managing director at Bain Capital Real Estate, added, “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. 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.”
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