How Matthews™ Maximized Value Through the Sale and Redevelopment of a Dark CVS Property
Matthews™ facilitated the $3.8 million sale of a 13,031-square-foot former CVS property located at 1899 North Highland Avenue. The Matthews™ agents represented both parties in the transaction, creating a solution that aligned the objectives of each side. Despite the property being a dark location with eight years remaining on the lease, the agents positioned the asset around its remaining income stream and long-term redevelopment potential. The transaction ultimately delivered value for both clients while supporting future investment in the surrounding community.
Challenge
The property presented several complexities that required careful coordination by the agent. The tenant had already vacated the building while remaining obligated under the lease, creating questions around future value and repositioning. Additional environmental considerations required thorough due diligence, and the property’s location as an outparcel to a shopping center introduced additional coordination with neighboring ownership. The seller also sought to complete a 1031 exchange while minimizing the loss relative to the original acquisition price.
Strategy
The Matthews™ agents maintained frequent communication with the Fortune 100 tenant throughout the transaction to verify lease obligations and property status. Multiple site visits were conducted to confirm key building systems, including HVAC functionality, helping preserve confidence in the asset’s condition for future redevelopment. The agent also worked closely with the shopping center ownership to address issues affecting the outparcel and keep the transaction on schedule. Matthews’™ marketing resources, transaction support, and proprietary database generated qualified interest and helped navigate the deal through closing.
Result
The transaction produced a successful outcome for both parties. The seller completed the desired 1031 exchange while preserving significant value, and the buyer acquired an income-producing asset with the opportunity to redevelop the property for a new corporate tenant after benefiting from the remaining NNN lease term. The redevelopment is expected to strengthen both the shopping center and the surrounding neighborhood. Following the closing, the client recognized the Matthews™ agents as “drugstore gurus” and stated that the transaction would not have been possible without their expertise and execution.
