Oaks Development lands medical office space

North Carolina-based Oaks Development Group today announced the purchase of Cypress Professional Center, comprised of class A medical office space in Punta Gorda, Fla.

The value of the transaction was not disclosed.

The 29,927-square-foot property at 25097 Olympia Ave. is being converted to Oaks' unique tenant-ownership model in which tenant partners split 50 percent ownership interest based on how much space they occupy.

"This concept relieves doctors of having to take time away from their practices to manage property, while still offering tax benefits and investment income," says Charlie Barker, developer in Oaks' Florida office.

While there is no capital outlay required for pro rata ownerships, tenant partners have first right of refusal on an additional 25 percent ownership through equity investment. Oaks retains only 25 percent ownership and is responsible for professionally managing the asset over the long term. Tenant partners receive distributions of operations profits as well as refinancing profits.

At the time of purchase, the property housed a cardiology practice, but the overall occupancy level was not disclosed.

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