The White Cap Portfolio consisted of five industrial warehouse properties across Nebraska, Iowa, and Illinois, totaling 121,406 square feet on 12.70 acres. Featuring a strong-credit tenant on rare Absolute NNN leases, the portfolio delivered stable income with minimal landlord obligations. Matthews™ Senior Associate Taylor Dintzner was engaged to evaluate a real estate strategy, and ultimately close this transaction.

 

Strategically positioned in both primary and tertiary markets such as Maquoketa, IA and Grand Island, NE, the portfolio offered geographic diversity while showcasing the strength of tenant commitment. Prior to marketing, lease terms were short, but the team secured early renewals across all five properties with extended lease terms and increased rents, enhancing the portfolio’s investment appeal and long-term stability.

 

Acquired for $6.2 million (94% of list price) by an experienced Midwest investor seeking high-yield returns, the deal overcame environmental diligence challenges and showcased the agent’s ability to source buyers directly and execute seamlessly.

 

Client Objectives

The sellers, former owners of Stetson Building Products, had retained these properties after selling their business in 2017. With ownership spanning more than eight years, their goal was to simplify their holdings, exit a long-term partnership, and reposition assets as part of a broader retirement strategy. They sought to maximize value at the time of sale, targeting a smooth transaction that would convert real estate equity into capital for a DST investment while ensuring the properties were well-positioned for long-term stability through lease extensions.

 

Challenges

The White Cap Portfolio transaction presented several unique challenges that required expert navigation. Early in the process, the properties were subject to extensive environmental due diligence, with the buyer’s consultants recommending Phase II testing on all five sites. While four assets were cleared, one required remediation before the lender was satisfied, creating additional complexity and timing pressure.

 

Market dynamics added another layer of difficulty. With most of the assets located in tertiary Midwest markets, such as Maquoketa, IA—home to roughly 6,000 residents—there was limited data to support valuations or benchmark lease rates. In addition, the portfolio initially went to market with short lease terms, which reduced buyer confidence. Securing early renewals with extended terms and increased rents was critical to repositioning the properties and strengthening their investment appeal.

 

The deal structure also required careful communication. While the Absolute NNN leases and strong-credit tenant provided long-term stability, this lease profile was uncommon for properties in smaller markets. The Matthews™ agent had to emphasize these strengths while simultaneously addressing both the seller’s objective of a timely, value-maximizing exit and the buyer’s requirement for high-yield returns amid market and environmental complexities.

 

Strategy

To maximize value and achieve the sellers’ retirement objectives, the Matthews™ agent focused on a targeted, relationship-driven approach. Rather than broadly marketing the White Cap Portfolio on third-party platforms, the agent leveraged existing investor relationships to generate pre-vetted offers and streamline the process. At the same time, negotiating early lease extensions with increased rents transformed the portfolio’s risk profile, strengthening its appeal to qualified buyers. By identifying an investor comfortable with tertiary markets and motivated by high cap rates, the agent positioned the portfolio to close efficiently while delivering a strong price.

 

Result

White Cap Portfolio successfully closed at $6.2 million, representing 94% of list price. Despite environmental hurdles, tertiary market challenges, and short lease terms at the outset, the Matthews™ agent delivered a strong outcome by securing early lease extensions, addressing lender concerns, and sourcing a buyer directly through established relationships.

 

For the sellers, the sale achieved their objective of simplifying ownership and reallocating capital for retirement through a DST investment. On the buy side, the acquisition provided an attractive opportunity for an experienced Midwest investor seeking high-yield returns with long-term stability.

 

“This portfolio closing highlights our team’s ability to maximize value for sellers while delivering an attractive investment for buyers. By negotiating early lease extensions and navigating environmental challenges, we secured a strong outcome for all parties involved.” -Matthews™ Senior Associate Taylor Dintzner