Challenge
Located in a small, tertiary market in Paris, TN, Walgreens was experiencing downward trending sales, performing well below the national average. The managers who owned the property were looking to exchange the equity into a more stable investment with excellent credentials such as a long-term lease, prime retail location, and strong tenant performance with a positive future growth outlook.

Strategy
Utilizing the extensive Matthews™ database, the team was able to build mass exposure for the property appealing to multiple buyers creating competition. Ultimately, a well-qualified local buyer was identified whose acquisition criteria fit the Walgreens property perfectly. The buyer was local to the market, indicating their comfort with the underlying real estate. The property was purchased for generation wealth preservation, and closed within one percent of the list price. Through the execution of the Matthews™ 1031 Exchange Program, the seller was able to trade into a high-growth restaurant property with a long-term lease in a growing market.

Results
By exchanging out of a short-term, high-risk asset into a brand-new construction property operated by a fast-growing concept, the client preserved both equity and cashflow. As a result, the client continues to experience their desired passive income achieved through net lease ownership, with the added peace-of-mind of a new 20-year lease.