How Matthews™ Maximized Value for a Fully-Occupied Strip Center in the Atlanta MSA

The disposition of Arrowhead II Shopping Center, a 7,800-square-foot strip center located in Jonesboro, Georgia, required a targeted marketing process to complete the downleg of the seller’s 1031 exchange. With a total transaction value of $1,500,000, the assignment demanded a focus on generating qualified buyer interest and maximizing value.

 

Opportunity

Built in 1981 and positioned perpendicular to Tara Blvd, the property carried a sub-optimal visibility profile within an adverse retail trade area. Although the center demonstrated steady occupancy with a locally owned tenant mix, it required active management and entailed significant landlord responsibilities under gross lease structures. In-place rents were elevated relative to comparable market rates, and the prevalence of short-term leases ranging from one to three years increased rollover risk and created uncertainty around long-term income stability.

 

Strategy

Strategically positioning the property to emphasize its value-add upside, Matthews™ highlighted the opportunity to convert existing gross leases to NNN structures and mark rents to market upon lease expiration. By framing the asset around future income potential rather that its current lease profile, the agents attracted substantial competitive interest.

 

The marketing campaign ultimately produced over 15 offers from 1031 exchange buyers, all-cash buyers, and value-add investors across local and out-of-state markets. Simultaneously, Matthews™ leveraged the firm’s national platform to identify an off-market NNN replacement asset to complete the seller’s upleg.

 

Result

Matthews™ directly sourced a local investor seeking a high-cash-flowing, stabilized asset in a familiar submarket. Closing at $1,500,000 and achieving a $192-per-square-foot exit with no price discounts, we successfully completed a full end-to-end 1031 exchange, with both the downleg and upleg closing within four days.

 

The transaction not only maximized exit value but transitioned the seller into a more stable, passive investment better aligned with their long-term goals.