Exclusive Exchange: $29M Multi-State STNL Portfolio
The Opportunity Following the sale of a generational, family-owned farm, Matthews™ was engaged to exclusively execute a $29 million 1031 exchange on behalf of a private family. The family’s objective was to transition from a management-intensive agricultural asset into a diversified portfolio of passive, long-term net lease investments designed to preserve and grow wealth for future generations. The reinvestment strategy focused on acquiring high-quality, income-producing properties with strong real estate fundamentals, below market rents, and minimal management requirements. The mandate required national diversification across multiple tenant verticals while maintaining consistent cash flow and downside protection. Ultimately, the assignment resulted in the acquisition of nine net lease assets across six states. The Challenge & Strategy This exchange presented a unique challenge due to the family’s ownership structure and decision-making dynamics. Three siblings held equal ownership, each with spouses and children actively involved in the process. While aligned on long-term goals, each sibling had slightly different return targets, geographic preferences, and asset-type criteria for their respective allocation within the portfolio. Matthews™ Market Leader Keegan Mulcahy and Executive Vice President & Managing Director Chad Kurz worked directly with each segment of the family, hosting weekly calls and maintaining clear, consistent communication throughout the entire exchange timeline. They developed a segmented portfolio strategy that balanced individual preferences while preserving overall diversification and performance objectives. A key component of the strategy was sourcing off-market opportunities to maximize pricing, terms, and efficiency. Leveraging Matthews’™ proprietary national shared database, direct outreach to ownership groups, and targeted cold-calling campaigns, the team successfully sourced seven of the nine assets off market, significantly enhancing the portfolio’s value. Execution & Results Matthews™ successfully completed the $29 million 1031 exchange, acquiring nine net lease assets across six states while meeting all exchange deadlines and return requirements. The final portfolio featured a diversified mix of tenant verticals, strong real estate fundamentals, and below market rents—positioning the assets for long-term stability and potential future upside. By securing a majority of the acquisitions off market, Matthews™ was able to deliver more favorable pricing and terms compared to competitive on-market alternatives. The exchange achieved the family’s overarching goal: converting the proceeds from a generational farming operation into a passive, institutional-quality real estate portfolio designed to be held and passed down for generations. The transaction highlights Matthews™ ability to manage complex, high-balance 1031 exchanges involving multiple stakeholders, individualized investment criteria, and assets across numerous markets—while maintaining a streamlined, organized, and client-first execution process.
Chad Kurz
Executive Vice President & Managing Director
