Matthews™ Agents Orchestrate An Equity-Preserving Joint Venture Amid Walgreens Market Exit

This case study outlines the successful sale of a Walgreens property in Richmond, TX, on behalf of a private investor. Facing a challenging retail environment and shifting tenant dynamics, the client turned to Matthews™ for strategic guidance and execution. Agents Josh Longoria, Simon Assaf, and Christian Becker implemented a creative joint venture structure, allowing the seller to roll equity into a new partnership, retain upside potential, and reduce capital loss—ultimately transforming a distressed deal into a successful, mutually beneficial outcome.

 

Challenge

As Walgreens exits Wall Street, the tenant’s decreasing desirability and profitability the seller enlisted the help of Matthews™ to overcome the challenges and get them the best deal possible. The seller in this transaction was a private individual who had placed their retirement money into this investment. Their main goal for this deal was to protect as much of their equity as possible, especially as their losses continued to grow over time. During the time of this transaction process, Walgreens had announced that it would be closing 1,200 stores, making it increasingly harder to sell this property as time went on. With the announcement being made while the agents were under contract, this caused one of the potential buyers to back out, in turn, forcing them to restart their efforts.

 

Strategy

The agents orchestrated a creative joint venture structure that strategically aligned the interests of both the buyer and the seller. Rather than a straightforward disposition, the seller rolled their equity from the sale into the newly formed partnership with the buyer. This rollover allowed the seller to maintain a stake in the asset and benefit from future performance, while also signaling long-term commitment and confidence in the venture. In addition, this structure reduced the amount of equity the buyer needed to contribute upfront, thereby enhancing projected returns and overall deal efficiency. By facilitating this alignment, the agents delivered a solution where both sides achieved their objectives: the seller retained ongoing upside, and the buyer maximized capital leverage.

 

Results

Despite significant headwinds, the Matthews™ agents successfully navigated the challenges of a rapidly shifting retail landscape and executed a transaction that preserved the seller’s equity and met the buyer’s financial goals. By repositioning the deal structure after an initial buyer withdrew, the agents secured a new buyer and restructured the transaction as a joint venture. This innovative solution not only salvaged a deal that was at risk of collapse but also transformed it into a win-win outcome. The closing of this transaction stands as a testament to the agents’ adaptability, deal-making creativity, and commitment to client outcomes under challenging market conditions.

 

Client Testimonial

“After trying to sell by Walgreens through another broker, with no success, Joshua contacted me to discuss using Matthews as my brokerage and Joshua as my rep. From the beginning I liked Joshua’s demeanor and professionalism, so I decided to list with him. It took 14 months and 2 cancelled contracts to make it through the finish line but through it all Joshua remained very positive and kept his level of service, and attention to detail, at a very high level. Instead of trying to coerce me into taking deals that didn’t make sense, Josh always listened to my opinions and needs. I highly recommend him.”