Bain Capital Real Estate and 11North Partners have created a joint venture to acquire and operate open-air retail centers throughout the US and Canada.

The partnership will predominantly focus on open-air retail assets with a high concentration of necessity-based tenants.

Bain Capital Real Estate head Ryan Cotton said the company expects strong performance to continue among convenience-oriented, necessity-based retail, delivering positive results to tenants.

“But, the market has yet to fully appreciate the bifurcation of the retail sector, which we believe leads to the opportunity for highly attractive risk-adjusted buying. There are few proven private platforms to capitalize on this opportunity set, and we feel fortunate to partner with Brian and his team as we build a high-quality portfolio of scale,” Cotton said.

Meanwhile, 11North CEO Brian Harper noted an attractive risk-return opportunity for open-air retail centers, thanks to the confluence of tailwinds and strong real estate fundamentals.

“We believe historically low supply growth and increased demand for open-air shopping centers, driven by strong retail sales, persistent work-from-home trends, and the increased prevalence for omnichannel shopping, provide a favorable backdrop for the sector,” 11North CEO Brian Harper said.