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Oaks' hybrid structure is set up as a single purpose limited liabilitycompany (L.L.C.). Tenant partners split 50 percent ownership interest based onhow much space they occupy. While there is no capital outlay required for prorata ownerships, tenant partners have first right of refusal on an additional25 percent ownership through equity investment. Oaks retains only 25 percentownership and is responsible for professionally managing the asset over thelong term. Tenant partners receive distributions of operations profits as wellas refinancing profits.
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RJ King & Associates' principal Bob King, CCIM, is exclusive broker forthe Oaks' project in Punta Gorda. King can be reached at 813.874.1515 [email protected]. "Oaks brings almost 30 years of medical officedevelopment success to Florida. Its model aligns the interests of landlordsand their physician tenants to the benefit of both, providing tenantsownership in the properties without capital investment," says King.
As a testament to Oaks' long-range vision, the company has built andacquired 42 assets and retained them all in its portfolio. Over the years,Oaks has carefully structured its model to minimize costs and maximize returnson the assets it owns for its partners.
The company has found the model works equally well for new construction aswell as in the acquisition of existing facilities.
"This concept relieves doctors of having to take time away from theirpractices to manage property, while still offering tax benefits and investmentincome," says Charlie Barker, developer in Oaks' Florida office. "We believewhen doctors focus on what they do best, they create value in the asset.Shouldn't they be the ones to benefit?" Barker says.
Birmingham, AL-based Red Mountain Bank provided financing for the PuntaGorda project.
About Oaks
Oaks Development Group, http://www.oaksdevelopment.net, is a privateequity funded real estate investment group specializing in the acquisition,construction, conversion, restructuring and management of medical/professionalproperties to achieve a consistent long term and stable return for privateinvestments. The Oaks model involves strategically sharing equity intransactions with individual tenants. Oaks Development Group is headquarteredin Cary, North Carolina; with offices in Boston; Chicago; Miami, FL; Austin,TX; Savannah, GA; Tampa, FL; and Wilmington, NC.Such refinements include: -- limiting partner risk by starting to build only after 50 percent of the building is pre-leased; -- requiring a minimum of five parking spaces for every 1,000 square feet of building; -- focusing on properties without restrictions or other limiting covenants that would prevent the provision of ancillary services by tenants -- multi-tiered exit strategies; -- nesting of complimentary professions to create synergy, increased patient flow and -- natural referrals within the project; and -- designing buildings and practice combinations that enhance patient care.
SOURCE Oaks Development Group
