| Purchase Price | $25,500,000 |
|---|---|
| Annual Rental Income | $1,560,000 |
| Cap Rate | 6.12% |
| Lease Term | 16.3 Years |
| City | Reno |
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BJ’s Wholesale Club – Reno, Nevada (Washoe County – Northern Nevada Trade Hub)
This opportunity offers investors the rare chance to acquire a ground-leased BJ’s Wholesale Club in Reno, Nevada—a booming regional hub in the Western United States and the commercial and economic heart of Northern Nevada. This absolute triple-net (NNN) ground lease is backed by a Fortune 500 company and offers 100% passive income with zero landlord responsibilities, underpinned by mission-critical real estate in one of the most economically dynamic and demographically vibrant markets in the western U.S.
Located in the rapidly expanding Reno-Sparks MSA, the subject property sits within a high-growth corridor with strong infrastructure, a favorable tax environment, and limited competing club-format retailers. BJ’s continues to execute a national growth strategy focused on high-income, underpenetrated regional trade areas—and Reno exemplifies this model with its population growth, logistics infrastructure, and corporate investment led by companies such as Tesla, Panasonic, Amazon, Apple, and Google.
This offering is structured as a long-term, absolute ground lease where BJ’s owns all improvements and is solely responsible for taxes, insurance, maintenance, and repairs. The asset provides the ultimate in passive real estate investing—zero management, zero capital obligations, and durable cash flow secured by a credit-rated corporate tenant.
The Reno location represents a critical expansion for BJ’s footprint in the Western U.S. and is backed by substantial capital investment and regional marketing. The property benefits from strategic access to interstates, population centers, industrial parks, and rapidly growing suburban housing developments—making it one of the most desirable net lease investment opportunities in the Western U.S. retail sector.
Tenant Overview – BJ’s Wholesale Club Holdings, Inc.
BJ’s Wholesale Club Holdings, Inc. (NYSE: BJ) is one of the largest warehouse club operators in the U.S. The company serves over 6.8 million members with more than 240 clubs and over 165 fuel centers, operating in 20 states and expanding rapidly in key high-growth markets across the South and West.
BJ’s delivers a value-driven warehouse model similar to Costco and Sam’s Club but with a unique focus on grocery and consumables, which make up over 60% of its revenue. This high-frequency purchase model ensures steady foot traffic and high membership renewal rates. BJ’s clubs feature full-service grocery departments, fresh foods, electronics, apparel, general merchandise, optical centers, tire centers, and gas stations. The company’s private-label brands, digital order integration, and omnichannel execution continue to drive its appeal with modern consumers.
Key corporate metrics include:
BJ’s club locations are typically developed in infill or suburban trade areas with high homeownership rates, dense middle-to-upper-income populations, and limited competition. Reno’s inclusion in this strategy reflects the market’s transformation into a Western growth engine fueled by technology, logistics, and diversified industry investment.
Lease Overview – Absolute NNN Ground Lease Structure
This BJ’s property is subject to an absolute NNN ground lease, offering complete landlord passivity. Ground leases are among the most desirable forms of real estate investment due to their structural simplicity, risk mitigation, and long-term income stability. In this structure, BJ’s pays for and maintains all improvements, remits real estate taxes directly, and handles all maintenance and repairs without any landlord involvement.
Lease characteristics:
With substantial site investment—typically exceeding $25 million for store and fuel center buildout—BJ’s is deeply committed to long-term occupancy. Ground leases with high-credit retailers like BJ’s in strategic Western U.S. locations are extremely rare and often tightly held.
Market Overview – Reno, Nevada (Washoe County)
Reno is the largest city in Northern Nevada and the cultural and economic capital of Washoe County. Once known primarily as a gaming and tourism hub, Reno has undergone a dramatic transformation into a major logistics, technology, and lifestyle market with nationwide and international appeal.
The area’s economic revival has been driven by major corporate investment and favorable business climate—no state income tax, business-friendly regulations, and affordable operating costs compared to California. The influx of technology, manufacturing, and e-commerce companies has driven a surge in population, real estate demand, and consumer spending.
Key market highlights:
Reno is no longer a second-tier gaming market—it is now a first-tier economic development zone and lifestyle magnet, making it an ideal location for expansion-oriented retailers like BJ’s Wholesale Club.
Submarket Overview – Reno Trade Area
The BJ’s Wholesale Club in Reno serves a wide-reaching trade area that includes not just Reno proper, but also Sparks, Carson City, and suburban and exurban communities throughout Washoe County and adjacent counties. The regional trade area includes residential, student, tourist, industrial, and commuter demographics.
The site is well-positioned along heavily traveled arterials and near major highways, offering access to tens of thousands of households within a short drive. The area features complementary national retailers such as Costco, Walmart, Target, Lowe’s, Home Depot, and regional grocery chains. The property benefits from limited direct competition in the club-format segment, ensuring high consumer penetration and member retention.
Submarket drivers:
BJ’s presence in this corridor positions it to serve a customer base that values bulk shopping, low pricing, and fuel savings—all aligned with Northern Nevada’s demographic profile.
Property Overview – Site Improvements and Operations
BJ’s typically develops properties to the latest operational standards, emphasizing customer convenience, logistics efficiency, and omnichannel flexibility. The Reno location is expected to include modern improvements designed for longevity, customer throughput, and merchandising optimization.
Typical site attributes:
BJ’s locations are known for their high average ticket price, loyal member traffic, and efficient operations, which translate into strong in-store sales and low occupancy cost ratios.
Strategic Investment Case – Why BJ’s in Reno Makes Sense
The BJ’s Wholesale Club in Reno offers one of the most compelling ground lease investment profiles in the Western U.S. for the following reasons:
Ground lease investments with tenants of this caliber, in fast-growing, land-constrained markets, are among the most desirable in the net lease world and trade at a premium due to long-term risk mitigation and secure income.
Conclusion
The BJ’s Wholesale Club in Reno, Nevada offers institutional-quality real estate with a high-credit tenant, mission-critical site infrastructure, and bulletproof lease structure in one of the most dynamic markets west of the Rockies. With no landlord obligations and strong consumer fundamentals, the asset is a textbook example of stable, long-term income in a zero-management structure.
For investors seeking capital preservation, tax efficiency, and secure yield from one of the country’s top emerging markets, this BJ’s Wholesale Club represents a prime acquisition opportunity. Ground leases in top-tier Nevada metros are exceptionally rare, particularly with tenants of this scale and credit. This is an ideal asset for 1031 exchange buyers, family offices, or long-term real estate portfolios seeking dependable, durable returns.