Matthews™ agents successfully facilitated the sale of an originally owner-occupied, single-tenant industrial property in Denver, CO that had been under the same ownership for more than two decades. Following the sale of the operating business, the new owners retained the asset and transitioned into a passive landlord, with the business buyer remaining as the tenant.

 

Challenges

Over time, the now out-of-state ownership became increasingly disconnected from the asset. The untended property hadn’t been visited in years, deferred maintenance began to accumulate, and rents remained well below market levels. The owner had prioritized occupancy over reinvestment, leaving a clear value-add opportunity unpursued.

 

This created a clear challenge when the time came for the owners to exit the asset. The Matthews™ agents would have to sell a property with below-market rents and material capital improvement needs, while achieving a market-level sales price.

 

Strategy

Rather than masking these issues, the Matthews™ agents leaned into transparency. They marketed the property with a clear narrative that addressed the rent gap and capital needs head on, eliminating surprises and establishing credibility with buyers from day one.

 

To further refine the buyer pool, the agents implemented a front-end vetting process. Interested buyers completed a detailed questionnaire, outlining how they viewed the required capital improvements and the pro forma rents Spencer Mason they had underwritten. This allowed the agents to quickly separate serious, capable buyers from those who were less likely to execute. The agents secured over a dozen property tours and several offers. However, the real inflection point came through their broader sourcing strategy.

 

By leveraging the Matthews™ shared master database, the agents introduced the opportunity to an out-of-state 1031 exchange buyer who would not have otherwise seen the listing. They connected the property with a buyer actively seeking a replacement asset under strict timing constraints.

 

Result

The buyer ultimately out competed the local buyer pool, both on price and certainty of close, driven by exchange deadlines and a long-term investment perspective.

 

As a result, the Matthews™ agents successfully closed the transaction, overcoming local market limitations by expanding the buyer pool, creating competition, and aligning with a motivated capital source.