Matthews™ successfully sold a 5,000-square-foot industrial property occupied by Core & Main for $850,000. The asset presented both challenges and opportunities, requiring creative execution to achieve the seller’s financial objectives and align with the buyer’s exchange requirements.

 

Challenges

When the property was first listed, only eight months remained on the lease, with two, three-year renewal options. Investors perceived the short lease term as a major risk, creating hesitation and limiting strong offers. The seller, a private investor who acquired the property in 2021, aimed to maximize value and benefit from significant rent growth while preparing to complete a 1031 exchange into another asset. Achieving this outcome required eliminating rollover concerns and strengthening tenant stability, while also maintaining the seller’s timeline for reinvestment.

 

Strategy

Recognizing the lease structure as the primary obstacle, the Matthews™ agent leveraged his established relationship with Core & Main to negotiate an early option renewal during diligence. This proactive approach transformed what was initially a weakness into a distinct advantage. At the same time, the agent aligned with the seller’s goal to transact quickly and positioned the property to attract exchange buyers seeking creditworthy tenants. The buyer, a Texas-based partnership, was completing its own 1031 exchange and found the renewed lease terms aligned seamlessly with its investment criteria.

 

Result

Through strategic execution, the Matthews™ agent delivered a smooth transaction that closed in just 29 days, well ahead of schedule. The seller successfully captured strong pricing, secured a lower cap rate than their purchase, and enhanced their financial position to reinvest into a more stable asset through a 1031 exchange. The buyer obtained a reliable long-term investment backed by a nationally recognized tenant and an improved lease profile. Ultimately, this deal underscored Matthews’™ ability to anticipate challenges, create stability, and deliver results that served the best interests of both parties.

 

Client Testimonial

It was a pleasure working with Taylor Dintzner and Matthews™ on the sale of my industrial property in Lubbock, TX. The work ethic was clear; Taylor presented four offers near list price within two weeks of signing the listing agreement. We ultimately moved forward with a Texasbased 1031 buyer who closed ahead of schedule in only 29 days. I strongly recommend working with Taylor for the sale or purchase of industrial assets.

– Seller, Core & Main, Lubbock, TX