Precedent principals Jim Eidson and Barry Hancock haven't set an offering deadline, but say they've mailed 30 packets to curious but well-capitalized investors just in the first week of bringing the assets to market. They insist interest is not coming from bottom fishers, but instead investors looking for solid cash flow and economic stability. "People are looking for yield," says Hancock, who says the appeal is simply location, cash flow, medical tenants and a demographics shift.
"If we see something that looks right, we'll go with it," Eidson explains of the open-ended offering. "We are positioned to go one way or another." That "another" is holding their stacked deck of cards with a newly closed refi through First American Bank of Bryan, TX.
Dallas-based Precedent acquired the properties in Plano and DeSoto in December 2001 after paying $25 million to Eidson's old boss, Crescent Real Estate Equities of Fort Worth. Purchased empty, the buildings generate a combined $2.1 million in triple net leases, according to the duo.
The 86,000-sf DeSoto building, leased to Select Medical Corp., opened its doors in June. The DeSoto property, leased for seven years, is situated on 3.8 acres at 800 Kirnwood Dr.
The 69,000-sf Plano facility, positioned on about seven acres at the intersection of Preston Road and Tennyson Parkway, is in the midst of a $3.5-million retooling for its tenant, LifeCare Hospital of North Texas. It signed an 11-year lease with the intention of opening an acute-care facility that will create 300 jobs. The facility is to open in mid- to late November.
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