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                         San Antonio Business Journal               
Copyright The San Antonio Business Journal, Inc. 1991;              
Business Dateline; Copyright (c) 1991 UMI/Data Courier

                               November 29, 1991

SECTION: Vol 5; No 48; Sec 1; pg 4

LENGTH: 499 words

HEADLINE: Kinetic Concepts Buys Victoria Tower for $6.85 Million

BYLINE: Paula Moore

DATELINE: San Antonio; TX; US

 BODY:    Even as the ink dries on Kinetic Concepts Inc.'s winning bid 
for Victoria Tower, interests close to the high-tech hospital bed maker 
may continue negotiations for the Century Building.

   The company also tentatively plans to keep its current space downtown 
on East Houston Street.

   For the last couple of years, KCI had looked at buying the 
186,000-square-foot, copper-colored glass Century Building on Northeast 
Loop 410 and hoped to complete a deal for the $ 4.7 million structure 
this fall. Now the manufacturer itself probably will not pursue that 
property, but Bob Wehrmeyer, senior vice president and general counsel at 
KCI, says that "other people related to KCI might be interested in the 
Century Building."

   He declined to elaborate further on who might take the property, and 
KCI's broker, Ken Pruitt of Transwestern Property Co., was unavailable 
for comment when his office was contacted this week.

   KCI also "has a need" for its 37,000-square-foot space at 3440 E. 
Houston St., possibly for its graphics operation, according to Wehrmeyer. 
Ultimately, publicly held Kinetic Concepts would like to have all of its 
325 employees under Victoria Tower's roof.

   KCI purchased the 6-year-old, 170,411-square-foot Victoria Tower for $ 
6.85 million last week at a Resolution Trust Corp. auction in Palm 
Springs, Calif. Because feasibility work will take 30 days, the company 
expects to move into the building in early 1992, says Wehrmeyer. The 
company will occupy about 65,000 square feet of Victoria Tower.

   According to the RTC, 12 of 14 "premier" commercial properties were 
sold at the auction for more than $ 92 million.

   KCI won't manage and lease the office high-rise, says Wehrmeyer. 
Westlake Realty Corp. handles the property now and would like to continue 
in that capacity, says Deborah Schumacher, Westlake's director of 
marketing.

   Before settling on Victoria Tower, KCI also looked at suburban 
properties such as Pacific Plaza, Airport Center (which reportedly was 
sold recently to a

                                                                       
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Courier               

Minneapolis real estate company), Ashford Oaks and the Groos  Bank  
building.

   Located off Interstate 10 West at 8023 Vantage Drive, Victoria Tower 
was built by a local partnership made up of developers  David Saks  and 
Doyle Spruill, who recently were indicted on allegations of savings and 
loan fraud, and Carl Raba of the engineering firm Raba-Kistner 
Consultants Inc. The building, which originally was called Omni Grandview 
Tower, was sold in 1985 to Peregrine Investment Co. Eventually, Gill 
Savings Association-foreclosed on the property when a $ 9.1 million loan 
using the building as collateral went into default.

   In 1986, the building became the focus of a $ 114 million lawsuit when 
the Omni Grandview partnership sued Mobile Oil Corp. over a gas spill 
from a neighboring Mobile gas station that seeped onto the property. The 
action was settled in June 1989 when Mobile agreed to pay Omni $ 6.5 
million, says the plaintiff's attorney, Gerald Drought of Martin, Drought 
& Torres Inc.

GRAPHIC: Photo

SUBJECT: Real estate; Real estate sales; Property management; Southwest

GEOGRAPHIC: Southwest Region; San Antonio; TX; US

COMPANY: Kinetic Concepts Inc; DUNS: 08-313-9394; SIC: 7359;3841; TICKER: 
KNCI

CO:  KINETIC CONCEPTS INC; 

TS:  KNCI (NASDAQ); 

IND:  412 PERIODICALS; 

LOAD-DATE-MDC: January 15, 1992