| Purchase Price | $28,750,000 |
|---|---|
| Annual Rental Income | $1,375,000 |
| Cap Rate | 4.78% |
| Lease Term | 20 Years |
| City | Cary |
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Costco Wholesale Ground Lease – Cary, North Carolina (Raleigh-Durham MSA – Wake County)
This long-term ground lease to Costco Wholesale Corporation in Cary, North Carolina represents one of the most secure and passive income-producing retail investment opportunities available in the net lease market today. As a mission-critical location for one of the most successful and creditworthy retailers in the world, the asset is underpinned by a corporate-backed absolute triple-net ground lease with zero landlord responsibilities. Situated in Cary, one of the most affluent and fastest-growing suburbs in the Raleigh-Durham-Chapel Hill Research Triangle, this property combines irreplaceable real estate with one of the strongest tenants in the retail sector.
Costco operates as a membership-based wholesale club and ranks among the top five global retailers by revenue. With more than 130 million members, a global footprint of over 800 warehouses, and a focus on high-volume sales, low markups, and operational efficiency, Costco has become a retail juggernaut. Locations are highly selective and strategically positioned for regional dominance, with strict site selection criteria based on demographics, income, population growth, and visibility. A ground-leased Costco in an infill, high-income market such as Cary reflects the apex of credit, location, and income durability for net lease investors.
This offering is ideally suited for 1031 exchange buyers, private capital investors, family offices, and institutions seeking long-term, bond-like income backed by one of the most consistent-performing companies in the S&P 500. The absolute triple-net lease provides true passive ownership, and the underlying real estate is situated in one of the premier growth corridors in the southeastern United States.
Tenant Overview – Costco Wholesale Corporation
Costco Wholesale Corporation (NASDAQ: COST) is one of the world’s largest and most financially sound retailers. Headquartered in Issaquah, Washington, Costco operates more than 850 warehouses across the globe, including over 600 locations in the United States. The company specializes in selling a wide variety of products in bulk at low prices to its exclusive members. Its core offerings include groceries, electronics, appliances, home improvement products, clothing, pharmaceuticals, fuel, and business services.
Costco has a reputation for minimal pricing markup, strong supplier relationships, and high employee satisfaction. The company’s efficient, no-frills model allows for lower prices and rapid turnover, and its membership-driven business generates strong recurring revenue. The average Costco location grosses approximately $220 million in annual sales, among the highest per-store revenue figures in retail globally.
Corporate highlights include:
Costco is known for its conservative expansion strategy, high performance standards, and tight control over real estate operations. The company rarely relocates or closes successful locations, and its presence often increases the value and visibility of surrounding commercial real estate. For investors, a Costco ground lease is considered one of the safest income-producing retail assets available in the net lease universe.
Lease Structure – Absolute Triple-Net Ground Lease
The subject property is leased to Costco on an absolute triple-net (NNN) ground lease basis. This lease format places all responsibility for maintenance, taxes, insurance, utilities, and structural repairs solely on the tenant. The landlord retains ownership of the land while Costco has the exclusive right to use the property for the lease term. Ground leases are among the most passive forms of real estate ownership and are highly desirable for buyers seeking low-risk, management-free investments.
Key lease highlights:
Because Costco owns and builds its own improvements (buildings, parking, fuel stations), their financial and operational commitment to a location is substantial. Ground lease investors benefit from this infrastructure without bearing capital expenditure responsibilities.
Market Overview – Raleigh-Durham-Chapel Hill MSA (The Triangle)
The Research Triangle region is one of the most dynamic economic and population growth engines in the United States. Centered around Raleigh, Durham, and Chapel Hill, this metro area is known for its educated workforce, booming technology and biotech sectors, and exceptional quality of life. It is home to three tier-one research universities (Duke, UNC-Chapel Hill, and NC State) and several Fortune 500 companies.
The Triangle region boasts a diverse economy, affordable housing, strong public schools, and a mild climate, all of which have driven explosive in-migration from across the country, particularly from the Northeast and West Coast. It is a top relocation market for professionals and retirees alike, and has been recognized by national rankings for its livability, job growth, and housing stability.
Regional highlights include:
The region’s sustained population growth, strong housing demand, and expanding infrastructure continue to attract national retailers, logistics firms, and corporate headquarters to the Triangle.
Submarket Overview – Cary, North Carolina (Wake County)
Cary is one of the most affluent and sought-after suburbs in the Triangle, located just west of Raleigh in Wake County. Known for its master-planned neighborhoods, top-ranked public schools, and affluent demographics, Cary consistently ranks as one of the best places to live in the country.
Demographics and submarket strength:
Cary’s carefully managed zoning, infrastructure investment, and environmental standards make it a high-barrier-to-entry market. As a result, commercial real estate in Cary holds strong long-term value, with properties in key corridors demonstrating consistently low vacancy and high demand.
Property Highlights and Strategic Role
This Costco property is a full-scale, high-volume retail and fuel center, encompassing typical warehouse club features such as:
Strategically, this property serves as Costco’s flagship location for southern Wake County and is likely integrated into the company’s larger supply chain and last-mile logistics strategy for the Raleigh-Durham area. Its proximity to both I-40 and I-540 allows for easy access to residential, commercial, and industrial zones, as well as the Research Triangle Park.
Investment Highlights
Conclusion
The Costco ground lease in Cary, North Carolina, offers one of the most compelling combinations of tenant credit, lease security, income passivity, and real estate fundamentals in the net lease marketplace. Ground leases to credit tenants like Costco are among the most desired assets by institutional and private investors, and they rarely become available in high-growth, affluent markets such as this.
With a corporate-guaranteed lease, zero landlord responsibilities, and a location in one of the most coveted submarkets in the Southeast, this property delivers all the hallmarks of a long-term, generational investment. Investors looking for portfolio stability, passive cash flow, and credit-backed security will find this asset ideally suited to long-term wealth preservation.