Case Study: Advance Auto Parts 1031 Exchange
As the landlord of a 10-year old Advance Auto Parts, the client sought a new construction investment to provide long-term stability and security against potential store closures resulting from the Advance Auto Parts acquisition of CARQUEST. The client’s down-leg property was an outparcel to a furniture outlet. The rent per square foot was significantly higher than that which was being paid by other tenants in the market, and the property had limited upside potential. Many local brokers had asked the client to list the property, however, none of them placed importance on the exchange process. The client’s primary objection to selling was the uncertainty of financing an up-leg investment that would improve her position. Realizing the need for action, the client listed exclusively with Matthews™ to complete the 1031 Exchange.
Matthews™ identified the client’s motivations and enacted a strategy through the 1031 Private Client Advantage Program to improve their position, meet their goals for greater security, and exceed expectations. While earning the client’s top price and best terms on the sale, Matthews™ performed an investment security profile for her down-leg property to compare the assessment of her up-leg investment options. Understanding that the client’s primary motivation was security, Matthews™ presented multiple properties with security scores, which would improve her position and meet her investment plan. Immediately following the confirmation of 1031 Exchange legal adherence by the company’s exchange accommodator partner, Matthews™ drove the steps of identification and submission of an LOI on the up-leg investment prior to the close of escrow to reduce down-time in the client’s cash flow.
Working with Matthews™ through the step-by-step 1031 Private Client Advantage Program, the client’s investment position was propelled towards their goal for investing in retail commercial real estate. The up-leg investment was a brand new development in Virginia with a 15-year corporate guaranteed lease. The property was out-parceled to Walmart with a rent per square foot in-line with the market rents in the area. It provided the client with a true appreciable asset with the utmost investment security.
“After years of rejecting offers to list by other brokers, I hired Matthews™. They understood the value of my 1031 Exchange, provided the right advice to put strategy behind my investment, and gave me the up-leg options I needed to put me in a better position.”
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