For Sale
$2,145,667

892 Frontenac St Aurora, IL 60504

6,280 SF, 6.75% Cap Rate, NNN Lease

Overview

Added:
Dec 11, 2024
Days on market:
138
This exceptional investment opportunity presents a 6,280-square-foot medical office building in Aurora, Illinois, currently leased to Action Behavior Centers, a national autism therapy operator with over 270 locations. The property, built in 2009 and situated on a 1.08-acre lot, enjoys a prime location in affluent DuPage County, just outside Chicago. The current tenant holds a 10-year net lease (NNN) commencing November 1, 2023, with a remaining term of approximately 9.2 years and two 5-year renewal options. The lease includes a favorable 2.5% annual rent increase, providing a hedge against inflation and consistent cash flow growth. The asking price is $2,145,667, representing a compelling 6.75% capitalization rate based on a net operating income (NOI) of $144,833. The property boasts 100% occupancy and benefits from the tenant's strong financial backing by Charlesbank Capital Partners, who acquired the business for $840 million in 2022. The surrounding area features high household incomes (over $129,000 annually within a 1-mile radius) and a dense population (over 259,000 within a 5-mile radius). This investment offers a stable, passive income stream in a rapidly expanding sector of healthcare, with the global autism therapy market projected to reach $6 billion by 2030. The tenant's established presence and expansion plans, coupled with the lease terms and location, make this a highly attractive opportunity for discerning investors. The property is e-commerce resistant, and the tenant's infrequent relocation due to patient retention and moving costs provides additional security.

Highlights

  • Extremely passive investment: A long-term, single-tenant healthcare property with a landlord-friendly, NNN lease ideal for out-of-state investors.
  • E-commerce resistant tenant: Healthcare properties are highly sought-after investments due to their resistance to e-commerce competition and economic downturns.
  • Sticky tenancy: Autism therapy practices rarely relocate due to patient retention and high moving costs, providing landlord security.
  • Large and growing market: The U.S. applied behavior analysis market is projected to reach $6 billion by 2032, growing at a 4.8% CAGR.
  • Prime Chicago MSA location: Situated in Aurora, Illinois, the second most populous city in Illinois and part of the Chicago MSA.
  • Affluent area with high population density: Average household income within 1 mile exceeds $129,000 annually; population within 5 miles exceeds 259,000.

Property Details for 892 Frontenac St

Property type
Day care centers & nurseries, Retail properties
Square Feet
6,280 SF
Year Built
2009
Lot Size (sq. ft)
47,045 SF

Location Insight

City
Aurora
County
DuPage
State
Illinois
Latitude
41.7406583
Longitude
-88.229132

FAQs

What type of property is this?
Day care center & nursery - 6,280 SF, 6.75% Cap Rate, NNN Lease
Where is the day care center & nursery located?
The property is located at 892 Frontenac St Aurora, IL.
What is the asking price?
The asking price for this property is $2,145,667.
What are key features of this property?
This property features: Extremely passive investment: A long-term, single-tenant healthcare property with a landlord-friendly, NNN lease ideal for out-of-state investors.; E-commerce resistant tenant: Healthcare properties are highly sought-after investments due to their resistance to e-commerce competition and economic downturns.; Sticky tenancy: Autism therapy practices rarely relocate due to patient retention and high moving costs, providing landlord security.
How can I contact the broker?
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892 Frontenac St
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