The Texas office of Oaks DevelopmentGroup has closed on Shavano Oaks II, a35,000 square–foot medical office buildingat 3603 Paesanos Parkway in north centralSan Antonio. The site, located just east of theintersection of Loop 1604 and NorthwestMilitary Highway, will feature the company’sunique tenant–ownership model that dividesownership of the building among the tenants,equity investors and the developer
This is Oaks’ third project in San Antonio.The building is ready for occupancy, andthe company has received commitments forabout 85 percent of the building with signedleases and letters of intent. Tenant owners includethe Neurology Institute of San Antoniowith Dr. Suzanne Gazda and Dr. R. BradenNeiman and the Spine & Pain Center of SanAntonio with Dr. Dennis Karasek.There arealso plans for a physical therapy, a sleep clinicand imaging on site, according to Sarah Teelof MSL Investments, broker/ real estate agentfor Oaks Development Group in Texas. “Thebuilding is in a convenient location with aneasy flow to hospitals in both the medicalcenter and Stone Oak,” said Teel. “With itsbeautiful ‘lifestyle’ environment and strongtenant owner mix, only a small amount ofspace remains available.”
The Oaks model is unique in that tenantsacquire their ownership without an outlayof capital. “Oaks’ structure provides tenantowners 50 percent of the building’s ownershipbased on the size of their space,” said Eric Perardi,developer in Oaks’ Texas office. Tenantpartners receive pro–rata distributions fromoperations and refinancing as the value of theinvestment increases over time. “As a partnerin the deal, we remain involved long–term,professionally managing the asset,” he added.
As a testament to the company’s longrangevision, Oaks Development Group hasbuilt, acquired and retained in its portfoliomore than 40 assets with approximately 1.55million square feet, valued in excess of $245million. “The model has been structured andrefined to minimize costs and maximize returnsin a tax efficient manner for its partnersover the long term,” added Perardi.
* Maintaining a project risk profile lowerthan similar commercial real estate; * Maximizing available exit strategies; * Providing equal or better than marketrates of return; and * Providing complete separation betweenthe operations of the tenant’s practice and theownership in the building. * The company has found the model worksequally well for new construction, as well as,in the acquisition of existing facilities.
“Our approach relieves doctors of havingto take time away from their practicesto manage property, while still offering taxbenefits and investment income,” said KerryAngus, partner in Oaks’ Texas office. “Webelieve when doctors focus on what they dobest, they create value in the asset. Shouldn’tthey be the ones to benefit?” he adds. “GettingShavano Oaks II financed on attractive termsin the toughest credit market in decades is atestament to the strength of our ownershipstructure and our track record” said Angus.
Oaks also holds property in The MedicalCenter and Westover Hills. Both have spaceavailable for physicians and other businessprofessionals who want to own their ownbuilding but be able to focus on their practice,rather than facility management.
or more information please contact:Ann Close, aclose@oaksdevelopment.net,919–460–6779
