How Matthews™ Drove an 83% Value Increase for McDonough Industrial Park
Matthews™ arranged the sale of McDonough Industrial Park, a five-building shallow bay industrial property located at 221–373 McDonough Pkwy in McDonough, Georgia. The asset, positioned within the greater Atlanta industrial corridor, traded to an out-of-state buyer following a highly competitive marketing process. Notably, the Matthews agents™ had also facilitated the property’s prior sale approximately two years earlier, making this the second transaction the firm completed for the asset. After strategic repositioning by the owners, the McDonough Industrial Park sold for an in-place 4.79% cap rate. Challenge At the time of the prior transaction, the property was fully occupied but faced structural challenges that limited investor confidence. Lease agreements featured little to no expense reimbursements, creating ambiguity in underwriting long-term cash flow. In addition, several suites were built out with excessive office space, reducing their functionality for modern shallow-bay industrial users. While occupancy remained strong, the lease structures and physical configuration constrained the asset’s appeal to both institutional and private equity buyers seeking predictable income streams. The challenge was to reposition the property into a more institutional-quality investment capable of commanding premium pricing in a competitive market. Strategy The owners implemented an approximately 18-month repositioning plan focused on operational clarity and physical enhancements. Lease structures were revised to improve operating expense recoveries and enhance income predictability. In addition, excess office buildouts were reduced across multiple suites, converting underutilized space into more functional warehouse configurations tailored to small-bay industrial tenants. Exterior improvements, including updated signage, parking lot enhancements, and overall property presentation, further elevated the asset’s profile. The Matthews™ agents leveraged their deep market knowledge and established investor relationships to launch a targeted marketing campaign that emphasized the improved income profile and strong Southeast industrial fundamentals. Within the first month, more than 15 tours were conducted, many with out-of-state groups, resulting in almost 20 offers. Result The competitive process ultimately resulted in a sale to an out-of-state buyer at approximately $112 per square foot, representing an approximate 83% increase in value from the spring 2024 transaction. The sale demonstrated sustained investor appetite for shallow-bay industrial assets in growth markets like the Atlanta metro and highlighted the measurable impact of disciplined repositioning. By advising on both the initial disposition and the subsequent sale following operational improvements, the Matthews™ agents delivered continuity, strategic guidance, and exposure to deep capital pools. Ultimately, they maximized pricing and reinforced the firm’s expertise in the evolving industrial investment landscape.
Thomas Wilkinson
Associate Vice President
