Ollie's Bargain Outlet Holdings, Inc. 10-K

Item 2. Properties We lease the majority of our retail stores, often in second generation sites ranging in size from 22,000 to 50,000 square feet. Our corporate headquarters, located in Harrisburg, PA, is 58,208 square feet and is leased under an agreement that expires in February 2033, with options to renew for three successive five-year periods. Our corporate data center and additional office space is 19,783 square feet and is under an agreement that expires July 31, 2022, with an option to purchase or an option to renew for one two-year period. Our 603,000 square foot distribution center located in York, PA is leased under an agreement that expires in March 2028 with options to renew for two successive five-year periods. Our 962,280 square foot distribution center in Commerce, GA is leased under an agreement that expires in April 2024 with options to renew for three successive five-year periods. In 2019, we constructed our 615,060 square foot distribution center in Lancaster, TX. The distribution center became fully operational during the first quarter of 2020. As of January 30, 2021, there were 388 Ollie’s Bargain Outlet locations across 25 contiguous states in the eastern half of the United States. In 2018, OBO Ventures, Inc. (“OBO”), a wholly owned subsidiary of Ollie’s, acquired a total of 12 former Toys “R” Us store sites as part of the ongoing real estate auctions for Toys “R” Us locations. The Company paid an aggregate of approximately $42 million for the store locations. The stores are located in states with existing Ollie’s Bargain Outlet stores. On May 31, 2019, OBO entered into a sale-leaseback transaction with an unaffiliated third-party for the 12 store locations. OBO received approximately $42.0 million for the 12 locations, which resulted in no net gain or loss. Each of the 12 leased locations has 15-year lease terms with options for renewal. We maintain a focused and disciplined approach to entering into lease arrangements. All leases are approved by our real estate committee, which is comprised of senior management and executive officers. Our leases generally have an initial term of approximately seven years with options to renew for three to five successive five-year periods and generally require us to pay a proportionate share of real estate taxes, insurance and common area or other charges.