Challenge

Located just two blocks from America’s second busiest airport, O’Hare International, the logistics building leased to DHL was primed for a tremendous deal. However, challenges surfaced as Matthews™ moved along in the deal process. A combination of DHL’s short lease term, the submarket’s notorious reputation for environmental issues, and the owner’s goal to sell the asset at near record-breaking metrics provided Matthews™ with a challenging opportunity. Determined to accomplish the owner’s goals, Matthews™ executed an off-market sale and helped facilitate a 1031 Exchange. The goal was to increase the owner’s net cash flow and security of income by acquiring assets with a longer lease term, which offered a higher yield.

Strategy

Due to the mechanics of this deal, Matthews™ understood that the buyer for this property needed to be sophisticated and had the ability to close all cash. Because the owner did not wish to market the asset, the collaborative culture and technology offered by Matthews™ played an integral role in sourcing the best buyer for this property. By managing both parties’ expectations and through clear communication, Matthews™ paved the way for a smooth transaction that left both the seller and the buyer satisfied.

Results

Matthews™ negotiated an incredible price for the seller at a low cap rate and high price per square foot, which allowed him to accomplish his investment goals. The buyer was elated as the property matched their acquisition criteria perfectly. They were able to add an incredibly well-located logistics facility leased to a multi-billion-dollar corporation to their portfolio.