Oaks Development Group Acquires Medical Office Building in Aus...( AUSTIN Texas April 2 2008 /- Nort...),Health

AUSTIN, Texas, April 2, 2008 /PRNewswire/ -- North Carolina-based Oaks Development Group announced today the company has closed on Post Oak Center North Bldg. 1 on Park Bend Drive behind St. David Medical Center in Austin, Texas. A 29,724-square-foot Class A medical office building, Post Oak Center North is being converted to Oaks' unique tenant-ownership model.

Oaks' hybrid structure is set up as a single purpose limited liability company (L.L.C.). Tenant partners split ownership interest of 50 percent of the L.L.C. based on how much space they occupy. While there is no capital outlay required for pro rata ownerships, tenant partners have first right of refusal to acquire an additional 25 percent ownership through equity investment. Oaks Development Group retains the last 25 percent of ownership and is responsible for professionally developing and asset managing the property long term. Tenant partners receive distributions of operations profits as well as profits obtained through refinancing.

"The Oaks Development model is a stable opportunity for physicians to build equity in their building without cash upfront," says Kerry Angus, Oaks partner. "In partnering long-term with established medical practices, Oaks manages the property for them -- and for maximized returns."

As a testament to Oaks' long-range vision, the company has built and acquired 42 assets and retained them all in its portfolio. Over the years, Oaks has carefully structured its model to minimize costs and maximize returns on the assets it owns with its partners.
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;

'/>"/>