A client had acquired an 11,991 square foot industrial property at 2202 Verus Street in Chula Vista, California, where a long-term tenant was in the process of vacating. Rather than re-leasing the property and holding it as a local investment, Matthews™ identified the asset as a strong candidate for an owner-user disposition, a strategy that offered materially higher value. An off-market buyer was sourced through Matthews™’ network, resulting in a market-high price per square foot sale. With proceeds in hand, the client elected to pursue a geographically unconstrained exchange, prioritizing credit tenancy, income stability, and yield.

 

Challenge

The primary challenge was maximizing value on a soon-to-be-vacant asset while minimizing downtime and leasing risk. Following the sale, the client needed to redeploy capital outside of the local San Diego market into an asset that delivered stronger cash flow without increasing operational complexity. Identifying high-quality, credit-leased opportunities with attractive yields required broad market coverage and access to opportunities not widely available.

 

Strategy

Matthews™ leveraged its national platform to source and evaluate off-market and pre-market opportunities across multiple markets. The search focused on single-tenant assets backed by strong credit tenants with long-term lease commitments, offering higher cash flow than comparable local investments. By utilizing internal agent relationships nationwide, Matthews™ was able to surface opportunities before they reached the open market and position the client for a decisive acquisition.

 

Result

The exchange culminated in the acquisition of a fully off-market industrial facility at 2155 West Nordale Drive in Appleton, Wisconsin, leased to ABC Supply Co. The tenant had recently executed a long-term lease renewal, demonstrating a strong commitment to the location and providing durable, stabilized income. The transaction expanded the client’s total owned square footage from 11,991 square feet to 62,358 square feet and increased annual net operating income from $129,502 to $307,762. The result was a transformation from a single, vacancy-exposed local asset into a diversified, credit-backed national investment with significantly enhanced cash flow.