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JLL is pleased to offer for sale the fee-simple interest in a long-term tenanted BJ’s Wholesale Club in a high-performing suburb of Cleveland, Ohio. BJ’s Wholesale Club, Inc. has occupied this site for twenty years and took action to further extend the lease with the first of four renewal options commencing this November. The Property is nearly 110,000 rentable square feet and generates annual NOI of $1,048,196 ($9.63 PSF), a substantially below market rate.
Investors have the rare opportunity to purchase an Asset leased to an industry leader in the US Warehouse Club Market, having exhibited Adjusted EBITDA CAGR of 12.5% since 2015. The in-place NNN lease ensures no landlord responsibilities and a passive investment structure, featuring potentially 20 more years of lease term escalating in line with inflation. The Offering represents a unique opportunity to purchase an attractive cash in-flow tenanted by a growing, profitable industry leader in a rebounding MSA.
- The Property is located in a demographically strong retail corridor with positive population growth fundamentals and a wealthy, average household income profile
- The Tenant is an industry leader with over $13 billion in 2018 revenue, also possessing strong adjusted EBITDA growth to the factor of a 12.5% CAGR from 2015 to 2018
- The US Warehouse Club market has grown by a 4.5% CAGR from 2007 to 2017 and is expected to capitalize on the continued positive tailwinds. BJ’s stands to capture a sizable portion of future industry gains due to their strong brand loyalty, membership retention rates, and diverse product offerings
- The Property has strong infrastructural connectivity, positioned immediately adjacent to Interstate 90 (70,000+ VPD)
- Annual net absorption in the Cleveland retail market has averaged 990,000 square feet over the 2014 – QTD 2019 timeframe