11North Buys Arizona Grocery Portfolio for $108.7M
The seven-property Arizona portfolio is anchored by Fry's Food Stores and marks the firm's first investment in the state's retail market.
Updated on Nov. 6, 2026 in Retail
11North Partners acquired a seven-property, grocery-anchored retail portfolio in Arizona for $108.7 million from A&C Properties Inc. JLL arranged the sale and secured $66.4 million in acquisition financing from an insurance company.
Why it matters
The deal expands 11North Partners' necessity-based retail platform into its eighth state, and the portfolio's below-market rents and 96 percent occupancy point to continued demand for grocery-anchored centers in Arizona. The acquisition arrives as Phoenix retail vacancy stands at 4.4 percent.
The $108.7 million portfolio covers about 423,000 square feet and is 96 percent occupied, compared with Phoenix overall retail vacancy of 4.4 percent in the third quarter. The source does not report the portfolio's rental income or the terms of the insurance company's loan beyond the $66.4 million amount.
The players
11North Partners
11North Partners is a real estate investment firm focused on necessity-based retail, which is now expanding into Arizona as its eighth state.
JLL
JLL is a global commercial real estate services firm that arranged the sale and secured acquisition financing for this transaction.
Bain Capital
Bain Capital is a global private investment firm that partnered with 11North on a separate $300 million acquisition of five grocery-anchored centers in May 2026.
The details
The seven properties, built between 1989 and the 2000s, sit in the Phoenix and Tucson areas, with three in Gilbert and single properties in Chandler, Mesa and Tucson. Fry's Food Stores anchors or shadow-anchors all seven centers, and the portfolio's rents sit below market levels.
Timeline
December 2025: 11North joint venture completed a $1.6 billion capital raise.
May 2026: 11North and Bain Capital acquired five grocery-anchored centers totaling about 757,000 square feet for roughly $300 million.
May 2026: 11North acquired West Town Corners in Altamonte Springs, Fla., for $59.5 million.
Market Landscape
Kidder Mathews reported that Phoenix net absorption for 2026 is about 1.75 million square feet, down 3 percent year over year, while nearly 2.6 million square feet of retail space was under construction in the third quarter, down almost 20 percent from a year earlier. Against that backdrop, 11North is buying grocery-anchored assets in a metro where new supply is shrinking and vacancy remains at 4.4 percent.
Shoppers at the Fry's-anchored centers in Gilbert, Chandler, Mesa and Tucson may see the grocery anchor continue operating under new ownership. The source does not indicate any change to store hours, pricing or services.
The takeaway
Grocery-anchored retail with high occupancy and below-market rents is drawing institutional capital into Arizona even as Phoenix construction pipelines shrink. Investors tracking retail real estate should watch whether absorption rebounds to offset the falling supply.
Further reading
Explore more Retail coverage to see how grocery-anchored centers are performing across the region.
Source note: This article includes information reported by Commercial Property Executive.
