Opportunity

Following the sale of his company, the founder of Richwood Industries retained ownership of the facility where the business continued to operate under new private equity ownership. Like many founders in this position, he was faced with a difficult question: What now?

 

Though the tenant’s operations remained “mission-critical,” the real estate presented several investment challenges:

• Above-market rent raised questions about long-term sustainability.
• Pending capital exposure, including structural and roof concerns.
• Lack of tenant financials, which complicated underwriting and buyer confidence.

 

The founder’s net worth remained heavily tied to a single asset— an increasingly risky position with more downside than upside. Matthews™ was engaged to evaluate the real estate strategy and execute a tailored disposition.

 

Strategy

Despite its complexities, the property offered compelling fundamentals:

• Infill West Michigan location
• Meticulous maintenance and pride of ownership
• Highly specialized tenant buildout

 

Matthews™ crafted a targeted, national marketing campaign that emphasized the tenant’s operational importance, long-term lease structure, and the strategic enhancements post-M&A. Buyers were drawn to the story of continuity, credibility, and long-term cash flow.

 

Most importantly, we positioned the opportunity as a way for the seller to de-risk, unlock equity, and reallocate capital toward more diversified and liquid investments.

 

Result

The asset was sold at a premium valuation through a competitive bidding process. The outcome:

• A significant liquidity event for the seller
• Full exit from a capital-intensive asset
• Protection from long-term lease risk, vacancy, and future maintenance exposure

 

Key Takeaways for Former Founders

If you’ve recently sold your business but retained the real estate, now may be the most opportune time to evaluate your property through the lens of an institutional investor. A newly signed lease, improved credit profile, and operational continuity often result in a meaningful lift in valuation—but the window to capture that value is not indefinite.

 

By working with Matthews™, you can explore strategies to monetize real estate at peak value, reduce concentration risk, and reallocate into more flexible, less volatile investment opportunities—without compromising the legacy you’ve built.