| Purchase Price | $26,900,000 |
|---|---|
| Annual Rental Income | $1,614,000 |
| Cap Rate | 6.00% |
| Lease Term | 19 Years |
| City | Naples |
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BJ’s Wholesale Club – Naples, Florida (Southwest Florida – Collier County)
This investment offering features a long-term absolute triple-net ground lease to BJ’s Wholesale Club located in the highly affluent and rapidly expanding market of Naples, Florida. Situated in one of the most desirable lifestyle destinations in the country, this ground-leased asset combines an elite tenant with a strategic retail location, delivering a passive, credit-backed income stream with no landlord obligations.
The lease is guaranteed by BJ’s Wholesale Club Holdings, Inc., a publicly traded and investment-grade rated Fortune 500 company. With over 240 club locations nationwide and a growing presence across the Sunbelt, BJ’s is expanding into high-income growth markets like Naples, where it serves a dense and affluent customer base. This property reflects the company’s latest-generation store design and operational model, featuring full-service warehouse retail, fuel station, and e-commerce integration.
The lease is structured as an absolute NNN ground lease, in which BJ’s owns all on-site improvements and is responsible for 100% of operating expenses, taxes, insurance, and maintenance. As such, this property offers true passive income with no capital expenditures or management duties required from ownership. The site represents a mission-critical location for BJ’s entry and expansion in Southwest Florida, supported by substantial capital investment, high local spending power, and limited competition from other national club retailers.
Given the scarcity of BJ’s Wholesale Club ground-leased assets in top-tier Florida markets, this property presents a rare opportunity for investors to secure a stable and durable income stream backed by a proven retail concept, highly strategic location, and corporate credit.
Tenant Overview – BJ’s Wholesale Club Holdings, Inc.
BJ’s Wholesale Club (NYSE: BJ) is a leading membership-based warehouse retailer, serving over 6.8 million members across 20 states. Founded in 1984 and headquartered in Marlborough, Massachusetts, BJ’s operates on a low-price, high-volume model similar to Costco and Sam’s Club. The company offers a wide range of groceries, general merchandise, electronics, apparel, and household goods, as well as pharmacy services, tire centers, and fuel sales at many locations.
With over $20 billion in annual revenue and consistent profitability, BJ’s is a top performer in the bulk warehouse sector. The company continues to expand its footprint in growth markets across the Southeast, including Florida, Georgia, Tennessee, and the Carolinas. Its real estate strategy is built around full-size club locations, most of which range from 85,000 to 100,000 square feet and include on-site fueling stations, parking for several hundred vehicles, and digital fulfillment capabilities.
Tenant highlights include:
BJ’s differentiates itself through its grocery focus (representing nearly 60% of revenue), more flexible store format, and expansion into suburban infill markets. It continues to attract an affluent, family-oriented customer demographic with value-driven membership benefits and high-quality private-label offerings.
Lease Overview – Absolute Triple-Net Ground Lease
This property is leased to BJ’s under an absolute NNN ground lease. Ground leases are highly sought-after by investors for their simplicity, predictability, and security. In this structure, the tenant owns and maintains all on-site improvements (building, parking, fuel station) and bears responsibility for all expenses associated with the property.
Lease characteristics typically include:
With substantial up-front investment in site construction and buildout, BJ’s has a strong incentive to retain occupancy for multiple lease terms. This makes the asset suitable for long-term portfolio holding, generational wealth strategies, and 1031 exchange reinvestment.
Market Overview – Naples, Florida (Southwest Florida – Collier County)
Naples is one of the wealthiest and most exclusive communities in the southeastern United States. Located in Collier County along the Gulf Coast of Florida, it is renowned for its luxury real estate, master-planned communities, high-end shopping, golf courses, and boating lifestyle. Naples has long been a destination for affluent retirees and second-homeowners, but recent demographic shifts have made it increasingly attractive to young professionals and year-round residents seeking a tax-friendly, high-quality standard of living.
Southwest Florida benefits from robust economic and population growth driven by domestic migration from high-tax states such as New York, Illinois, and California. The region’s economic base includes healthcare, tourism, financial services, professional services, and construction. The area also features low crime, A-rated public schools, and access to major regional airports and highways.
Naples market indicators:
The combination of strong consumer spending power, favorable demographics, and limited retail competition supports BJ’s long-term success at this location.
Submarket Overview – Naples Trade Area
The BJ’s Wholesale Club property in Naples benefits from strong retail fundamentals and strategic placement within a dense and affluent corridor. The immediate trade area includes a mix of established single-family neighborhoods, luxury condominiums, and gated communities. Several new residential developments are under construction nearby, driven by demand for lifestyle-oriented living and year-round residence in South Florida.
Key attributes of the trade area:
BJ’s entry into this submarket fills a notable void in club-style retail options for permanent and seasonal residents. Its business model is well-suited to meet the needs of multigenerational households, large-volume shoppers, and price-conscious retirees seeking value and convenience.
Property Overview – Site Specifications and Operational Highlights
BJ’s typically develops its properties with modern design standards and flexible site layouts to accommodate bulk shoppers and vehicular access. The Naples location includes full-site improvements built to the latest company specifications, allowing for maximum operational efficiency and customer volume.
Typical features include:
BJ’s Naples location was chosen for its visibility, access, and proximity to a core consumer demographic. The property is expected to generate strong per-square-foot sales and high member retention rates, contributing to the tenant’s long-term operational commitment.
Investment Summary and Strategic Case
This offering is a textbook example of high-quality triple-net ground lease investing. Investors benefit from the following:
In today’s market environment, ground leases with best-in-class tenants like BJ’s in elite submarkets like Naples offer a compelling combination of yield, security, and inflation protection. This asset is well-positioned to deliver strong relative returns and long-term value for private and institutional investors alike.
Conclusion
The BJ’s Wholesale Club ground lease in Naples, Florida is an exceptional investment in every category—tenant quality, location strength, lease structure, and real estate fundamentals. It offers a rare chance to secure a passive income stream in a booming Florida market with no management requirements and institutional-grade credit backing.
As the population continues to migrate toward high-growth, tax-friendly states like Florida, well-positioned ground-leased retail assets in affluent corridors are becoming increasingly scarce. Investors seeking portfolio stability, low operational risk, and long-term cash flow will find this BJ’s ground lease to be a premier opportunity.