• Bain/11North acquired 10 open-air retail centers for $395M in FL/SC
• 93%+ portfolio occupancy, with Publix anchoring 70% of centers
• Grocery anchors reporting ~$1,000/SF sales volumes, far above peer averages
• Lenders providing acquisition financing for high-quality necessity retail assets
• Cap rates for Sunbelt grocery centers holding in high 6%–low 7% range

Bain Capital Real Estate and 11North Partners’ $395 million acquisition of 10 open-air retail centers in Florida and South Carolina marks one of 2025’s largest retail trades. With 70% of the portfolio anchored by Publix and overall occupancy above 93%, the deal reflects institutional conviction in necessity-based, grocery-anchored retail—especially in Sunbelt growth markets. The transaction signals a pronounced shift in capital deployment toward defensive retail assets with durable cash flows, underpinned by strong local demographics and limited new supply.

The acquired portfolio consists of over 1 million square feet of gross leasable area, predominantly located in fast-growing Florida metros and Charleston, SC. Seven out of ten centers are anchored by Publix, with the remainder supported by daily-needs tenants such as Starbucks and Chick-fil-A. According to the disclosed data, current occupancy tops 93%, with minimal vacancy risk given the strength of anchor tenants and “high-barrier” market dynamics. On balance, steady tenant demand ensures stable income streams, making these centers attractive for long-term holds. One operator noted, “These locations fill up faster than we can market the vacancies.

The portfolio’s grocery anchors are generating sales of approximately $1,000 per square foot, a figure that outpaces national benchmarks and underscores the centers’ necessity-driven appeal. This high sales productivity translates directly to reliable rent collection, with Publix’s dominance in Florida providing additional credit stability. By contrast, secondary anchors—such as gyms or junior boxes—carry modest vacancy risk, but the diversified tenant mix mitigates concentration exposure. Ultimately, robust in-place sales are the backbone of the portfolio’s resilience.

Bain and 11North secured acquisition financing for similar assets at levels around $260 million, demonstrating lender appetite for stable, necessity retail. Debt remains available for high-quality, grocery-anchored portfolios, even as spreads have tightened and cap rates in the Southeast cluster in the high 6% to low 7% range. Should interest rates stabilize or decline, cap rate compression could boost asset values; if not, conservative underwriting and flat to slightly higher exit cap rates are prudent. In turn, the structure favors disciplined capital deployment over speculative growth.

Immediate post-acquisition priorities include integrating property management, auditing leases for mark-to-market opportunities, and launching capital needs assessments—particularly for upgrades and pad site development. These centers function as community hubs, and enhancements such as parking lot improvements or seasonal events can reinforce tenant and shopper loyalty. Furthermore, the joint venture’s growing portfolio unlocks economies of scale in purchasing and leasing, facilitating NOI growth and future regional expansion.

Sunbelt Demographics, Defensive Retail Themes
Looking ahead, the portfolio should deliver stable income and modest rent growth, as occupancy in the mid-90% range is expected to persist. Southeast migration and income trends underpin tenant demand. If interest rates ease, cap rates for grocery-anchored retail could compress, attracting more institutional capital. Conversely, with continued high rates, values should remain supported by NOI growth and the enduring appeal of necessity retail. The Bain/11North strategy of scaling in this niche may culminate in a REIT exit or further platform expansion, but success hinges on maintaining operational discipline and tenant performance.

Reliable cash flow is built on necessity, not novelty—a premium that’s priced into every lease.