| Purchase Price | $33,000,000 |
|---|---|
| Annual Rental Income | $1,650,000 |
| Cap Rate | 5.00% |
| Lease Term | 22 Years |
| City | Plantation |
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Costco Ground Lease – Plantation, Florida (Fort Lauderdale MSA – Broward County – South Florida Tri-County Region)
This offering features a premier ground lease to Costco Wholesale Corporation located in Plantation, Florida, within the highly coveted Fort Lauderdale metropolitan area of Broward County. Backed by an absolute triple-net (NNN) lease with a Fortune 50 tenant, this investment represents the highest caliber of passive, long-term real estate income available in the net lease marketplace. Combining institutional-grade credit, a true zero-landlord responsibility structure, and irreplaceable infill real estate in a dense, affluent, and rapidly growing South Florida market, this Costco ground lease exemplifies the gold standard for 1031 buyers, private capital groups, and institutional portfolios alike.
Costco’s presence in Plantation reflects its commitment to high-performing trade areas with proven demographic stability and long-term consumer demand. The site is located in one of the most economically vibrant regions of South Florida, positioned in proximity to major commuter corridors, regional employment centers, and some of the most desirable residential neighborhoods in the state. As one of the few large-format, build-to-suit Costco locations in Broward County, the property serves a multi-county consumer base spanning Fort Lauderdale, Sunrise, Davie, and Weston.
The lease is structured as an absolute ground lease, under which Costco owns the improvements and is fully responsible for all property expenses, including maintenance, taxes, insurance, and capital expenditures. The landlord collects rent with no active management required, making it ideal for wealth preservation, intergenerational estate planning, or long-term income stability with minimal operating exposure.
Tenant Overview – Costco Wholesale Corporation
Costco Wholesale Corporation (NASDAQ: COST) is the world’s third-largest retailer by revenue and a global leader in the warehouse club industry. With more than 850 locations across the United States and internationally, Costco serves over 130 million loyal cardholders and generates more than $240 billion in annual sales. The company operates under a membership-only business model that drives high renewal rates, predictable cash flows, and sustained consumer demand.
Costco’s mission is rooted in operational efficiency, low markups, and high inventory turnover, which has made it one of the most admired and successful retailers worldwide. The average Costco location produces annual revenues far exceeding those of traditional big-box competitors, with industry-leading per-store sales figures often approaching or exceeding $200 million. Costco is also a top-five U.S. gasoline retailer and a major player in pharmaceuticals, optical, e-commerce, travel, and business services.
Corporate highlights:
Costco’s commitment to a disciplined, long-term growth model, coupled with strong balance sheet fundamentals and a low-risk operational structure, make it one of the most desirable tenants in the triple-net investment universe.
Lease Overview – Absolute NNN Ground Lease
The subject property is leased to Costco under an absolute triple-net (NNN) ground lease. In a ground lease, the tenant leases the land from the landlord, constructs the building at its own expense, and assumes full operational responsibility for the property. This structure generates predictable, passive income for the landlord with virtually no risk of capital outlays or property-related liability.
Key lease components:
Given the cost of development and site-specific infrastructure, Costco rarely exits leased locations, especially in high-barrier markets. This predictability of occupancy, combined with zero management requirements, makes ground-leased Costco sites an elite asset class within net lease investing.
Market Overview – Fort Lauderdale MSA (Broward County, South Florida)
The Fort Lauderdale metropolitan area is the economic and cultural heart of Broward County and one of the primary anchors of the South Florida Tri-County region, which includes Miami-Dade, Broward, and Palm Beach counties. The area has experienced consistent population growth, real estate appreciation, and demographic migration from the Northeast, Midwest, and international markets.
South Florida is characterized by:
Fort Lauderdale’s economy benefits from a diversified foundation, access to global markets, and sustained housing and commercial development. Its business-friendly climate and high quality of life continue to attract both residents and corporations, bolstering the long-term fundamentals of regional retail assets.
Submarket Overview – Plantation, Florida
Plantation is one of Broward County’s most desirable and affluent suburban municipalities. Located just west of downtown Fort Lauderdale, the city features a mix of executive housing, Class A office parks, medical campuses, shopping centers, and educational institutions. Plantation has emerged as a high-income, family-oriented suburb with strong public infrastructure and sustained private investment.
Demographics and market indicators:
Costco’s decision to anchor a major facility in Plantation reflects the area’s strong consumer spending power, limited retail competition, and long-term demographic upside. The site draws customers from a broad radius including Davie, Sunrise, Lauderhill, and Coral Springs, and enjoys strong daily vehicle traffic counts and excellent freeway connectivity.
Property Overview – Infrastructure and Operations
As with most Costco ground leases, the tenant constructed the store and all improvements at its own expense. The property is designed to accommodate high-volume warehouse operations, fuel sales, and last-mile fulfillment capabilities.
Common site features include:
The tenant’s capital investment typically exceeds $25–30 million per site, creating long-term “stickiness” and reducing the probability of relocation or default. The improvements are often among the most highly trafficked retail facilities in their respective trade areas.
Investment Highlights
Conclusion
The Costco ground lease in Plantation, Florida represents one of the most secure and passive net lease investments in the national marketplace. It combines the essential components of an institutional-quality asset: an absolute NNN ground lease, investment-grade credit tenancy, irreplaceable South Florida location, and strong underlying real estate fundamentals.
With zero management responsibilities and durable long-term income backed by one of the most successful retailers in the world, this asset offers a reliable foundation for income stability and capital preservation in one of the most desirable tax-free states in the country. Given the scarcity of Costco ground leases, especially in top-tier coastal markets like Fort Lauderdale, this offering presents a rare opportunity to acquire a best-in-class net lease investment with exceptional long-term appeal.