Matthews™ completed the sale of the Circle K Portfolio in Indiana, consisting of three buildings, for $3,125,000. The portfolio, owned by a private client, required careful execution due to structural complexities within the leases and strict timing constraints tied to the seller’s broader investment strategy.

 

Challenge

Each property in the portfolio included tenant purchase options embedded within the leases, creating a layered and nuanced transaction. These provisions directly impacted valuation, lender confidence, and overall deal structure, as both buyers and lenders needed to evaluate the likelihood of the tenant exercising those options and the effect on long-term returns. At the same time, the seller was operating within the rigid timeline of a Reverse 1031 Exchange, making certainty of execution critical. Balancing lender scrutiny, buyer diligence, and the seller’s urgency required precise coordination and proactive problem-solving.

 

Strategy

The Matthews™ agent took a hands-on approach to aligning all parties early in the process. Clear communication was established between buyer, seller, and lender to address questions surrounding lease language and the implications of the purchase options. Leveraging prior experience with Circle K assets and gas station transactions, the agent provided relevant sales comparables and facilitated direct conversations with the lender to build confidence in the underwriting process. This proactive approach ensured concerns were addressed upfront and prevented delays that could have jeopardized the seller’s exchange timeline.

 

Result

The transaction closed successfully at $3,125,000, over $200,000 above the asking price, meeting the seller’s timing requirements and preserving deal momentum despite structural complexities. The buyer was able to expand an existing portfolio of gas stations across Indiana, while the seller completed the reverse exchange within the required timeframe. Execution highlighted the value of specialized market knowledge and the ability to guide all parties through a highly detailed transaction, resulting in a smooth and successful outcome.