11North Partners has acquired a seven-property, grocery-anchored retail portfolio in Arizona from A&C Properties in a transaction valued at $108.7 million. The assets, which total 422000 square feet, are located across the Phoenix and Tucson markets and are described as grocery-anchored neighborhood centers serving their surrounding communities.
JLL represented A&C Properties Inc. in the sale to 11North Partners. In addition to its investment sales role, JLL also arranged acquisition financing on behalf of the buyer. The financing package totals $66.36 million and was provided by a leading insurance company, reflecting the continued role of life insurance capital in backing stabilized retail assets.
The JLL Capital Markets Investment Sales and Advisory team on the portfolio disposition was led by Patrick Dempsey, Tess Berghoff and Ross Jorgensen. On the debt side, the JLL Capital Markets Debt Advisory team was led by Jarrod Howard, who sourced the acquisition loan for 11North Partners. Together, the advisory teams coordinated the sale and financing processes to facilitate closing of the grocery-anchored portfolio transaction.
The seven centers are currently reported to be 96% leased, underscoring strong tenant demand for grocery-anchored retail in the region. Fry’s Food & Drug serves as the portfolio’s grocery anchor, with additional tenants comprising a mix of daily-needs and necessity-based retailers tailored to each trade area. This tenant composition supports consistent shopper traffic and underpins the income profile of the properties.
According to information provided on the transaction, the portfolio offers investors both near-term cash flow and future upside potential. The grocery-anchored format delivers durable income, while mark-to-market opportunities are expected to emerge over time through tenant curation and lease renewals. These dynamics position the centers to benefit from ongoing consumer spending patterns tied to essential goods and services.
The Phoenix and Tucson retail markets are noted as continuing to attract investment capital, supported by population growth, favorable business conditions and resilient consumer activity. Within this context, the sale of the largely stabilized, grocery-anchored portfolio to 11North Partners highlights ongoing investor interest in necessity-based retail assets in established trade areas.
