How Matthews'™ Full-Lifecycle Execution Delivers 96% of List Price for 7 Brew Ground Lease
The 7 Brew project in Gainesville, Florida, represented a complex, multi-phase investment spanning nearly three years from inception to completion. The site, an underutilized parcel located less than a mile from the University of Florida and directly across from UF Health Shands Hospital, had previously failed to transact due to pricing challenges. Through strategic positioning, the Matthews™ agents facilitated the land sale, supported development execution, and ultimately guided the asset to a successful disposition despite evolving market conditions. Challenge The project encountered significant obstacles throughout its lifecycle. An extensive 18-month municipal entitlement process, coupled with construction delays, postponed the opening by four months, creating hesitation among investors who preferred stabilized, operating assets. Simultaneously, shifts in the 7 Brew corporate model toward lower-rent ground leases introduced pricing inconsistencies, making the subject property’s higher build-to-suit rent appear misaligned with newer market offerings. These factors contributed to investor uncertainty and increased scrutiny during the marketing phase. Strategy The Matthews™ agents leveraged comprehensive, start-to-finish knowledge of the asset to reframe the investment narrative and address buyer concerns. Rather than focusing solely on rent comparisons, the strategy emphasized the superior lease structure, a 20-year absolute NNN lease with rare annual rent increases, offering a stronger hedge against inflation than typical 15-year leases with five-year bumps. Additionally, the financial strength of the franchisee, one of the largest 7 Brew operators in the country, was highlighted to reinforce income security. Drawing on established relationships, the Matthews™ agents also identified a qualified 1031 exchange buyer, enabling a seamless capital transition into a high-profile location. Result Despite prolonged development timelines and shifting tenant trends, the agents successfully executed the disposition at 96% of the asking price to an all-cash 1031 exchange buyer. The transaction delivered a fully stabilized, long-term investment asset while meeting the developer’s exit objectives. The outcome underscores Matthews™ agents’ ability to navigate entitlement challenges, adapt to evolving tenant models, and create certainty in complex net-lease transactions.
Daniel Gonzalez
First Vice President & Associate Director