Case Study: Dollar General | Noble & Tulsa, OK

Challenge

The Matthews™ client was looking to sell his two Dollar General properties located in the state of Oklahoma, one in Noble and the other in Tulsa. Both properties were absolute triple net leases with 12 years and 13 years, respectively, remaining on the lease. The two properties had ideal surrounding demographics for Dollar General being in lower income and rural markets However, with the seller was a young private investor looking to own a property which appreciated over time and increased his overall return.

Strategy

Keeping the sellers’ goals in mind and utilizing resources offered by Matthews™, the team marketed the properties to ideal buyers. By applying the Matthews™ 1031 Exchange Program, the team executed and marketed the properties, keeping the goal of finding the client an ideal property that improved their position through the up-leg investment. Matthews™ sourced a buyer through a targeted email campaign. The buyer, a private investor, was looking to get into a high cash flow property.

Results

The Matthews™ client exchanged out of the depreciating Dollar General properties and invested in a strip center in Tallahassee, FL, located right next door to Florida State University. The client was able to purchase a property with strong increases, in a reliable market, and heightened his initial cash flow. The Dollar General properties in Noble and Tulsa sold for $950,000 and $1.6 million, respectively, and the client purchased the strip center for $1.765 million. Overall, as a result from working with Matthews™, the client was able to improve his location significantly as well as his cash flow.

Testimonial

“My goal of long-term wealth accumulation and diversification of future income streams began with the purchase of two newly-constructed Dollar General buildings. The long-term, absolute NNN, corporate-backed lease was attractive for a passive investor. However, after consideration, I decided to move away from those properties and look for other real estate that might better align with my goals. Now, I own a retail strip center in Tallahassee, FL with 3 separate tenants. This property, and similar properties, better position me for long-term appreciation and future income streams with diversity in rent and tenants, all in an area of population growth and demand.”