Challenge
A local developer was looking to offload their single tenant net lease asset as the neighboring 365-unit condominium that shares a playground with the daycare is slated to be converted into affordable housing. Therefore, potential buyers would have to take into consideration the impact of the deconversion. The Matthews™ agents were presented with the opportunity to find a buyer suitable for the property.

 

Strategy
Before the sale of the property, the Matthews™ agents created a customized business plan for the client to help mitigate deal stress and ensure a positive outcome. The agents built out a timeline of tasks and events that would assist the sale and search of the upleg property, helping prepare the client for the next steps in the transition. After consulting with an affordable housing and deconversion team, the agents learned that the large-scale development would take time and require a large financial commitment, unlikely to impose any threats to the value of the daycare. Representing the buyer, the Matthews™ agents helped in securing a single-tenant net lease property.

 

Results
The buyer, looking to increase cash flow and security through a long-term net lease, felt confident that the affordable housing units would not impact the property. Thanks to the tireless efforts of the Matthews™ representatives, the buyer achieved a 55 percent increase in rental revenue and secured a 20-year net lease, providing a hedge against inflation and backed by a reliable stream of income.