DESCRIPTION: 6740 N. Oracle Road is a single-story 12,720 square foot, garden-style office building that has been fully leased by Action Behavior Centers. A tenant in the building since 2021, Action Behavior Centers recently expanded from 6,511 square feet to now occupy the entire building. The expansion resulted in a lease extension through March 31 of 2033 with a lease that features 3% annual increases.
LOCATION: The property is located at 6740 N. Oracle Road, in the heart of the northwest Tucson. Tucson is home to the University of Arizona and is the second largest city in Arizona, with a population of just over 1,000,000 in the greater Tucson metropolitan statistical area. The property is located on Oracle Road (State Highway 77), just south of Ina Road intersection, which is one of the busiest intersections in Northwest Tucson. Its location is strategically located between the affluent communities of the Catalina Foothills and Oro Valley.
TENANT PROFILE: Action Behavior Centers (“ABC”) is one of the nation’s fastest growing Applied Behavior Analysis (“ABA”) therapy providers, widely considered the gold standard in autism treatment by payors and clinicians. ABC provides personalized therapy for children with autism, with the goal of expanding their potential and improving their quality of life. Founded as a single center in Austin, TX, in 2016, ABC currently employs approximately 400 graduate-level clinicians and operates almost 400 centers throughout the United States including over 50 in Arizona. In September of 2022 Action Behavior Centers sold to Charlesbank Capital Partners at an $840 million valuation and $60 million in projected annual adjusted earnings. Charlesbank’s investment 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. Per Charlesbank at the time of the purchase, their investment “will enable the company to add centers in both new and existing geographies to meet increasing patient demand while maintaining strong clinical outcomes.”
LEASE TYPE: The lease is a Modified Gross Lease with 3% annual increases. Tenant is responsible for pass-throughs of operating expenses over a 2022 Base Year. A full financial analysis of the lease, including the annual projected Net Operating Income and Cap Rates, is included in the Financial Analysis section of the Offering Memorandum.