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Case
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Reference no. 9-899-143
Subject category: Entrepreneurship
Authors: Arthur I Segel
Published by: Harvard Business Publishing
Originally published in: 1999
Version: 22 July 2003

Abstract

Holt Lunsford was intrigued by the packet of papers that lay in front of him. The papers comprised a brochure that Lonestar Bank had put together in an effort to sell the Shady Trail Distribution Center in Dallas, Texas. Shady Hill was a five-year-old, 120,000-square-foot distribution warehouse facility located on the west side of Dallas. Lonestar was asking USD4 million for the property. It was September 2003 and the Dallas real estate market was plateauing and the capital markets were in disarray. Lunsford had convinced 11 friends to put up USD100,000 each in addition to his own USD100,000 to acquire one or two troubled properties. Lunsford decided to focus on warehouse properties due to their relatively small size, their strong historical performance, and his relevant experience. He wondered whether Shady Trail would make a good investment.
Location:
Other setting(s):
1998-2003

About

Abstract

Holt Lunsford was intrigued by the packet of papers that lay in front of him. The papers comprised a brochure that Lonestar Bank had put together in an effort to sell the Shady Trail Distribution Center in Dallas, Texas. Shady Hill was a five-year-old, 120,000-square-foot distribution warehouse facility located on the west side of Dallas. Lonestar was asking USD4 million for the property. It was September 2003 and the Dallas real estate market was plateauing and the capital markets were in disarray. Lunsford had convinced 11 friends to put up USD100,000 each in addition to his own USD100,000 to acquire one or two troubled properties. Lunsford decided to focus on warehouse properties due to their relatively small size, their strong historical performance, and his relevant experience. He wondered whether Shady Trail would make a good investment.

Settings

Location:
Other setting(s):
1998-2003

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