Matthews™ Increases Client’s Cash Flow by 30% Through 1031 Exchange

Matthews
Real Estate Investment Services™ is pleased to announce the
successful execution of a 1031 Exchange from a multifamily investment to
two single-tenant net-lease investments. Matthews™ Senior Associate, Kyle
Mirrafati, facilitated the sale of an off-market 28-unit apartment
in the Palms Neighborhood of West Los Angeles for $7,100,000 at a 3.36%
CAP Rate into two 7-Eleven properties with gas in the Daytona Beach-
metropolitan area for a combined purchase price of $7,700,000.

The seller, an out-of-state mom-and-pop owner, was motivated to sell the
multifamily property, located at 9714-9720 Regent Street, as the
building had a considerable amount of differed maintenance, was
difficult to manage, and did not generating enough income due to rent
control laws. The buyer, an institutional client, admired Regent Streets
proximity to Downtown Culver City, and the rental upside potential the
building offered.

While Mirrafati encountered a long escrow process, negotiating two
30-day seller extensions, he was able to retain the buyer and seller’s
focus on the bigger picture. Mirrafati was able to show the seller that
they could exchange into an investment that had zero management
responsibilities and would increase their overall cash-on-cash return.

By utilizing the Matthews™ 1031 Exchange Program, Mirrafati presented
the seller with two off-market 7-Eleven’s in Florida that Aron
Cline, Senior Vice President and Senior Director of Single-Tenant
Net-Lease at Matthews™, had listed for sale. These properties were brand
new developments with great surrounding demographics, on a long-term
corporate lease with an investment grade tenant.

“This is a great success story that demonstrates the power of the
Matthews™ platform, and our 1031
Private Client Advantage Program is very influential for buyers and
sellers,” said Cline. “ We were able to offer the two 7-Eleven’s with
pre-commitments before rent commenced, with aggressive cap rates,” Cline
continued. “Both the seller and buyer were pleased with the outcome of
the transaction, as the buyer exchanged into an asset that required zero
management responsibilities.”

“The transaction was perfectly timed,” said Mirrafati. “Within a week of
closing Regent Street, the seller purchased the two 7-Eleven properties
resulting in limited income loss and a smooth transition into their new
investment that increased their overall cash flow by 30%,” Mirrafati
concluded.

For more information on 9714-972- Regent Street or the Matthews™ 1031
Private Client Advantage Program, please reach out to Kyle
Mirrafati with any questions relating to your multifamily
investment(s), and Aron Cline for questions relating to your net lease
investment(s). Aron
Cline currently has an additional ten newly constructed 7-Eleven’s
under contract with a trade buyer from California, and Kyle Mirrafati
has a non-contingent multifamily asset in escrow. If you want to view
our current listings, please visit WWW.MATTHEWS.COM.

About Matthews
Real Estate Investment Services™:

Matthews Real Estate Investment Services™ is recognized as an industry
leader in multifamily, shopping center, net lease, management, leasing,
portfolio disposition, and 1031 exchange programs. The firm is
headquartered in El Segundo, CA and serves clients throughout the United
States and Canada. For more information, please visit WWW.MATTHEWS.COM.

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