Lincoln and partner, Pacific Coast Capital Partners LLC of Segundo Beach, CA, took over the 73%-leased Plano Corporate Center I and II as a value-add play that will be re-sold "when we feel the market timing is right," Clay Duvall, senior vice president for the Dallas-based Lincoln, tells GlobeSt.com. "We'll lease them and look to take them back to market." In the more immediate, though, he says "our plan to date is to market the two tracts of land, but we'll be looking for a build-to-suit for the larger tract."
If the market proves its mettle, Duvall estimates Lincoln could fulfill its value-add plan, including lease-up of the two mid-rise buildings, within 18 to 24 months. The empty space will be put up for lease at $18.50 per sf to $19 per sf to meet the market.
Key to the decision to get into the chase for the Lord Baltimore Properties' asset was the opportunity to get it "for significantly below replacement cost," Duvall stresses. "We got it for a little bit below what new construction rates are today."
The complex's flexibility also weighed into Lincoln's decision to buy. "It's very flexible in terms of what size tenants you can put in there," Duvall says. "There are some larger tenants in the building and there are some smaller ones in there."
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