PALM COAST, Fla., Oct. 29 /PRNewswire/ -- North Carolina-based Oaks Development Group announced closing on the construction loan for 2.1 acres at Pinnacles Park in Palm Coast, FL. Oaks will develop a planned medical office building on the property. SunTrust Bank in Cary, NC handled the loan closing for the project. Site work is scheduled to begin by the end of the year.
Oaks is developing the 20,000-square-foot building using its unique ownership model that provides tenants with a piece of the ownership pie without requiring upfront equity. Just over 10,000 square feet is already under contract for a family dental practice, pediatrician and Doctor's Choice Lab.
"We are very pleased that we have achieved this milestone in the project. In the wake of unprecedented market turbulence and uncertainty in lending, this closing demonstrates the strength of the Oaks business model and the fact that real estate projects based on sound economic fundamentals are still financeable," says Charlie Barker, developer and partner in Oaks Development Group's Florida office.
Located in Pinnacles Park right off State Road 100, the Oaks building will sit across from the Florida Hospital Flagler. There is approximately 10,000 square feet still available under the Oaks ownership model for additional healthcare and professional tenants.
"With market fluctuations, our unique ownership model offers a stable platform for our investors and tenant partners. We build a project based on long term leases with our tenants, and we share that ownership benefit with our tenants and our investors," says Max Oaks, chairman of Oaks Development Group. "As developers, we bring more than fifteen years of experience to the table. In a volatile market, this non-speculative approach brings security and confidence to our partners. Our track record and established relationships over the last fifteen years help insulate us from market volatility."
Oaks' unique tenant ownership structure -- currently operating in more than 40 buildings across the United States -- is set up as a single purpose limited liability company (L.L.C.). Tenant partners split 50-percent ownership interest based on how much space they occupy. While there is no capital outlay required for pro rata ownerships, tenant partners may acquire additional ownership through capital investment. Oaks retains 25-percent ownership and will be responsible for professionally managing the asset over the long term. The final 25-percent is made available to equity investors. Tenant and equity partners receive distributions from operations and refinancing as the value of the investment increases over time.
Oaks has carefully structured its model over the years to minimize
costs and maximize returns on the assets it owns for 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
-- 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
-- designing buildings and practice combinations that enhance patient
About Oaks Development Group
Oaks Development Group, http://www.oaksdevelopment.net, is a private equity funded real estate investment group specializing in the acquisition, construction, conversion, restructuring and management of medical/professional properties to achieve a consistent long term and stable return for private investments. The Oaks model involves strategically sharing equity in transactions with individual tenants. Oaks Development Group is headquartered in Cary, North Carolina, with offices in Boston; Chicago; Austin, TX; San Antonio, TX; Savannah, GA; Tampa, FL; and Wilmington, NC. Please call 1-866-780-5095 or visit http://www.oaksdevelopment.net for more information.
|SOURCE Oaks Development Group|
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