11North Partners Buys Arizona Grocery-Anchored Portfolio

11North Partners has made its first investment in Arizona’s retail market with the $108.7 million acquisition of a seven-property portfolio in the Phoenix and Tucson areas from A&C Properties Inc. JLL arranged the sale and secured $66.4 million in acquisition financing from an insurance company.

The Arizona Grocery Portfolio comprises approximately 423,000 square feet across seven properties, all anchored or shadow-anchored by Fry’s Food Stores. The assets include:

•  Gilbert Fiesta Marketplace, 2487 S. Gilbert Road in Gilbert

•  Shops at Gilbert Fiesta, 2531 S. Gilbert Road in Gilbert

•  Township Plaza, 1927 E. Baseline Road in Gilbert

•  Riggs Marketplace, 985 E. Riggs Road in Chandler

•  Lindsay Marketplace, 2727 E. Broadway Road in Mesa

•  Tatum Plaza, 4707 E. Shea Blvd. in Phoenix

•  Randolph Plaza, 4150 E. 22nd St. in Tucson

According to Yardi Matrix data, the properties date from 1989 through the 2000s. The portfolio is 96 percent occupied, with the centers located along high-traffic corridors. According to JLL, the properties feature below-market rents, providing opportunities for future income growth.

---

READ ALSO: Retail’s Next Wave

---

This acquisition expands 11North Partners’ necessity-based retail platform into its eighth state.

The JLL Capital Markets Investment Sales and Advisory team was led by Managing Director Patrick Dempsey, Director Tess Berghoff and Analyst Ross Jorgensen. The JLL Capital Markets Debt Advisory team was led by Director Jarrod Howard.

Phoenix retail market tightens

The Phoenix retail real estate market is seeing declining vacancy, rising asking rents and a slower pace of new development, according to a third-quarter report from Kidder Mathews. Overall retail vacancy stood at 4.4 percent, unchanged from the previous quarter but down 10 basis points year over year.

Net absorption so far in 2026 is about 1.75 million square feet, down 3 percent from the same point last year, Kidder Mathews reported. Meanwhile, nearly 2.6 million square feet of retail space was under construction in Phoenix in the third quarter, which was down almost 20 percent from a year earlier.

11North Partners’ retail expansion

In May 2026, 11North and joint venture partner Bain Capital acquired five open-air grocery-anchored retail centers totaling about 757,000 square feet across California, Florida, Texas and Virginia for approximately $300 million. These acquisitions were the first ones by the joint venture since its $1.6 billion capital raise in December 2025.

Earlier that same month, 11North acquired West Town Corners, a 284,497-square-foot retail center in Altamonte Springs, Fla., from Washington Prime Group for $59.5 million. The buyer secured a $37.4 million acquisition loan from Bank of America.