#USA #Charleston #Retail Investment #Bond Street REIT #Conversant Capital

Bond Street REIT Expands Portfolio through Strategic Investment

In a significant announcement made on September 3, 2025, Bond Street REIT, recognized for its ownership of high-quality convenience retail shopping centers, revealed a strategic partnership with Conversant Capital. The latter is committing up to $300 million in growth equity to support Bond Street's ongoing expansion efforts.

Investment Goals

This infusion of capital is aimed at broadening Bond Street's already substantial portfolio, which currently comprises 39 distinct retail assets. With a market dynamic that showcases limited supply and strong tenant demand, the investment is expected to facilitate acquisitions exceeding $150 million annually. Furthermore, Bond Street has already earmarked $60 million in new acquisitions that are poised to close in the forthcoming months.

Michael D. Reynolds, the Founder and CEO of Bond Street, expressed his enthusiasm regarding the partnership, stating, "We are delighted to announce Conversant's commitment and are excited for our partnership. Their experience in scaling real estate platforms will be invaluable as we embark on the next phase of our growth." This partnership is anticipated to enhance Bond Street's role as a trustworthy buyer for retail property owners seeking liquidity and to allow it to pursue acquisitions via tax-efficient structures.

The State of Convenience Retail

Bond Street REIT has strategically positioned itself in high-growth southern markets, where it focuses on necessity-oriented retail. Its portfolio includes notable tenants like Starbucks, Chipotle, and Panera Bread, benefitting from strong demand driven by essential shopping needs. Operating metrics indicate that the company has maintained capital expenditures as a percentage of NOI below 8%, alongside impressive double-digit re-leasing spreads.

The convenience retail segment displays favorable attributes that make it a prudent investment choice now. For instance, the current market conditions exhibit a compelling combination of strong growth potential and low capital intensity for well-located retail centers.

Michael Simanovsky, Managing Partner at Conversant Capital, also expressed his excitement for the partnership, highlighting the opportune timing to invest in convenience retail assets. He noted, "With the attractive supply dynamic and institutionalization of the asset class, we see convenience retail as uniquely positioned to outperform over the long-term."

Future Outlook

Since its establishment in 2014, Bond Street REIT has focused on developing a top-tier portfolio concentrated within southern states like South Carolina, North Carolina, and Georgia. This strategy continues to yield strong results, enhancing its attractiveness to seasoned investors like Conversant Capital. The firm's approach balances prudent investment strategies with aggressive growth plans to ensure its continued appeal in the commercial real estate market.

As this partnership develops, both Bond Street REIT and Conversant Capital will likely leverage their strengths to tap into emerging market opportunities and further solidify their standings in the competitive landscape of retail real estate.