Burton Property Group Secures $124M Portfolio Recap
Multiple retail properties are included in the transaction.
Burton Property Group has partnered with Peaceable Street Capital to obtain $124 million for the recapitalization of a three-property, 785,598-square-foot retail portfolio in the Mobile, Ala., metro area.
JLL Capital Markets’ Investment Sales and Advisory Team provided $113.3 million in financing for the transaction.
The portfolio includes three grocery-anchored retail centers: Foley Square and Jubilee Square in Foley, Ala., and Westwood Plaza in Mobile, Ala.
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Major grocery tenants in the portfolio include Rouse’s Supermarket, The Fresh Market and Publix, which serves as a shadow-anchor for Foley Square. Anchor tenants make up 73 percent of the portfolio’s gross leasable area and 60 percent of base rent.
Other national retail tenants include TJ Maxx, HomeGoods, Hobby Lobby, ULTA, Dick’s Sporting Goods and AMC, along with dining options like Five Guys, Cici’s Pizza, Chick-fil-A and Chipotle.
The Mobile metro area is the third-largest in the state; Baldwin County, part of the metro, is also the fastest-growing county in Alabama.
Uncertainty in the retail market
Retailers are being more cautious with their leases due to uncertainty surrounding national trade policy, leading to lower demand for retail space this year, according to a recent Cushman & Wakefield report.
Retail leasing activity dropped 20 percent during the first half of 2025 compared to the same time last year, data in the report showed, with national net absorption clocking in at negative 6.5 million square feet during the second quarter.
The average asking rent was $25 per square foot in June, a 2.3 percent increase compared to last year, but still below the 4 percent range seen in early 2024.
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