Overview
Matthews™ is pleased to present a prime healthcare investment opportunity located at 5153–5167 W 111th St in Alsip, IL, a well-positioned suburban community within Cook County and just outside of Chicago. This newly renovated ±8,000 SF autism therapy center is 100% leased to Action Behavior Centers (ABC) on a seven-year NNN lease, featuring two, 5-year renewal options and 3% annual rental increases, offering investors reliable income with built-in inflation protection. The property underwent a full renovation in 2024 and benefits from strong local demographics, with average household incomes exceeding $112,027 within one mile and a population exceeding 300,513 residents within five miles.
Action Behavior Centers is a rapidly expanding operator with more than 300 locations across Texas, Arizona, Colorado, Illinois, North Carolina, and Minnesota. The company is backed by Charlesbank Capital Partners, which acquired the business in 2022 at an $840 million valuation. This private equity sponsorship, combined with ABC’s aggressive growth strategy, provides additional security and long-term upside for investors. With the global autism therapy market projected to grow to $6 billion by 2030, this offering provides investors with both stable income and a stake in a critical and fast-growing sector of healthcare.
Investment Highlights
- Extremely Passive Investment – This long-term single tenant healthcare investment features a landlord friendly lease structure with minimal landlord responsibilities that is ideal for out of state investors.
- Extensive 2024 Renovations – The property underwent significant upgrades in 2024, including all new HVAC systems, a fully inspected and warrantied roof, fresh painting, and over $1M of tenant improvements for interior renovations.
- E-Commerce Resistant Tenant – Healthcare operators aren’t prone to the same competition that many retail tenants face. Healthcare properties are highly sought-after investments for their insulation from e-commerce competition and resistance to economic downturns.
- Sticky Tenancy – Autism Therapy practices rarely relocate due to difficulty retaining the same patients in a new location, and the high cost of moving, which provides an extra level of security to a future landlord.
- Annual Rental Increases – The site features a 3.00% rental increase in the base term that serve as inflation protection through the growth of cash flow over the life of the lease. Billion Dollar Market for Autism Therapy – The global autism therapy market was valued at $2.19 billion in 2023. The market is projected to reach $68.72 billion by 2031, with a CAGR of 6.60% during the forecast period 2024 to 2031.
- Chicago MSA – Located in Alsip, directly adjacent to Oak Lawn, within Cook County and the Chicago MSA, the 3rd largest metropolitan area in the United States.
- Affluent Area with High Population -The average household income within 1 mile of the property is over $102K per year, and the population within 5 miles exceeds 369,000 residents.
- Favorable Depreciation – Given the heavy build out at this facility, this opportunity offers investors the ability to capture more favorable depreciation advantages through a cost segregation study. (*Investors to confirm with their own CPA)
- 300+ Locations – The tenant, Action Behavior Centers, operates more than 300 locations across Texas, Arizona, Colorado, Illinois, North Carolina, and Minnesota, making them one of the largest and fastest-growing providers of autism therapy in the country.
- Private Equity Backed: Action Behavior Centers is backed by Charlesbank Capital Partners, who acquired the business in 2022 at an $840M valuation. Their investment is a culmination of a multi-year evaluation of many ABA providers. Their diligence validated ABC’s position as a leading ABA provider with strong clinical outcomes, a unique culture that supports clinician retention, and a data-driven management team.
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