Medical Office Building Sells for $7.9M

PUNTA GORDA, FL-Oaks Development Group of Cary, NC, has purchased the Cypress Professional Center here with plans to convert it to a tenant-ownership model for doctors. The 30,000-sf, class A medical office building at 25097 Olympia Ave. near Charlotte Regional Medical Center, sold for nearly $7.9 million, or $262 per sf.

Oaks Development owns 43 similar buildings under its unique model, a hybrid lease structure which reserves 50% of the building’s equity for physician tenants with no capital outlay. A little over half the building remains to be leased under this structure.

“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, the company’s CFO and director of real estate development. “We believe when doctors focus on what they do best, they create value in the asset. Shouldn’t they be the ones to benefit?”