Bain Capital, 11North Acquire Retail Centers for $300M

Bain Capital Real Estate and 11North Partners have collectively invested approximately $300 million to acquire a portfolio of five high-caliber open-air retail centers. This strategic acquisition, executed through their dedicated joint venture, significantly expands their footprint in the necessity-based retail sector across key U.S. markets.

The newly acquired assets, totaling nearly 757,000 square feet, are strategically located in densely populated and affluent submarkets including Carlsbad, California; Falls Church, Virginia; Altamonte Springs, Florida; and Sugar Land, Texas. These locations benefit from robust consumer spending and a strong demand for essential retail services, underscoring the venture's focus on resilient real estate investments.

Anchored by prominent national retailers such as Harris Teeter, Trader Joe’s, Walmart, Costco, and fitness operator Equinox, the centers boast impressive sales figures, with anchor sales per square foot exceeding $900. The portfolio maintains a high occupancy rate above 93%, featuring a diverse mix of necessity-driven tenants including grocery, fitness, medical, and service providers, all characterized by low tenant financial risk.

This transaction marks a significant milestone for the Bain Capital Real Estate and 11North Partners platform, which has now deployed close to $1 billion of capital since its inception in April 2024. The partnership has rapidly assembled a portfolio of 18 assets, encompassing over two million square feet, demonstrating a disciplined approach to scaling its investment strategy.

“We are acquiring premier, irreplaceable assets in undersupplied markets at a basis that is exceptionally difficult to replicate today,” stated Brian Harper, Founder and Managing Partner at 11North. “The demographic profile of these locations, with average household incomes nearing $132,000 within a three-mile radius, aligns perfectly with our investment thesis. Our team’s extensive experience and data-driven approach ensure we allocate capital judiciously.”

Martha Kelley, a Managing Director at Bain Capital Real Estate, added, “These acquisitions are precisely aligned with our objective to build a portfolio of institutional-quality open-air centers. Our proprietary data analytics framework allows for precise evaluation of markets and assets, providing a distinct advantage. Following our substantial capital raise, our platform is robustly capitalized to pursue further growth opportunities alongside our expert partner, 11North.”

The joint venture's capacity for further investment is substantial, backed by over $2 billion in available equity, including capital from Bain Capital Real Estate Fund III and a recent $1.6 billion capital raise dedicated to open-air retail investments. The partnership continues to target markets exhibiting strong demographic tailwinds and exceptional retail productivity, aiming to create enduring value through strategic acquisitions and operational enhancements.