Concorde Targets Sunbelt Growth with New Grocery-Anchored Real Estate Fund
Miami, Thursday, 15 January 2026.
Capitalizing on Sunbelt migration, Concorde’s new fund targets resilient, grocery-anchored retail assets, offering accredited investors a defensive strategy amidst 2026’s evolving commercial real estate landscape.
Strategic Entry into Resilient Markets
On January 15, 2026, Concorde Group Holdings, LLC formally launched the Concorde Essential Properties Fund, a private investment vehicle designed to acquire and reposition grocery-anchored shopping centers [1]. This strategic move targets the high-growth Sunbelt region, capitalizing on a specific class of commercial real estate often viewed as defensive due to its reliance on essential daily needs rather than discretionary spending [1]. The fund is available exclusively to accredited investors with a minimum investment threshold of $250,000 and is structured to provide quarterly distributions [1]. By focusing on neighborhood and community centers anchored by high-performing regional grocery operators, Concorde aims to secure assets that generate consistent traffic regardless of broader economic volatility [1].
Demographic Shifts Fueling the Sunbelt Strategy
The fund’s geographic focus is not arbitrary; it aligns with significant demographic shifts reshaping the United States economy. High-net-worth individuals and businesses have been migrating from traditional coastal hubs to Sunbelt states, driven by tax policies and business climates. For instance, reports from early January 2026 indicate that a proposed wealth tax in California may have accelerated capital flight, with venture capitalist Chamath Palihapitiya estimating that $1 trillion in wealth has exited the state [3]. This exodus has directed substantial population flows toward states like Texas, Florida, and Arizona [5]. In 2023 alone, Texas attracted 93,970 former California residents, while Arizona and Florida welcomed 54,222 and 39,052 respectively [5]. These migration patterns underpin the logic of investing in essential retail infrastructure in these growing communities, where new residents drive immediate demand for groceries, healthcare, and services [1].
The Defensive Appeal of Essential Retail
In an investment landscape defined by what analysts are calling a “rebalancing” rather than a crash, the stability of grocery-anchored assets offers a counterweight to market fluctuations [4]. Joe LeBas, President and CEO of Concorde, emphasizes that these assets remain one of the most resilient segments of U.S. commercial real estate because they are embedded in daily life [1]. The fund specifically targets “internet-resistant” service tenants—such as fitness centers and healthcare providers—to complement the grocery anchors [1]. This approach is particularly relevant in 2026, as commercial real estate enters a recovery phase characterized by strong demand for necessity-based retail [4]. While the broader housing market is expected to see modest price growth of 1% to 4% nationally, the commercial sector is prioritizing income generation, making assets that consistently bring in rent the primary driver of returns [4].
Management Track Record and Outlook
Concorde brings a decade of operational history to this new fund, having managed over $125 million in assets and executed more than $500 million in transactions since 2015 [1]. The firm’s leadership includes Managing Director Adi Soozin, who has been associated with delivering Internal Rates of Return (IRR) in the 14-16% range [2]. This performance history is critical as investors navigate a 2026 market where interest rates are predicted to settle in the low to mid-6% range, requiring disciplined underwriting to ensure positive cash flow [4]. By targeting markets with limited new retail supply and strong business migration, the Concorde Essential Properties Fund aims to provide a hedge against inflation and economic uncertainty while leveraging the long-term growth trajectory of the American South [1].