Medical Property Developer Seeks Treatment Provider Partner

09/18/2018 -ATIN- A real estate developer with ties to Chicago is looking to partner with an experienced addiction treatment provider in a marriage of real estate expertise with addiction treatment know-how.

To start, TCO Equities, which is primarily involved in the management and development of medical real estate, is looking to redevelop a property on Chicago's South Side, a picture of which is seen here.

TCO Equities has been looking to get into the addiction treatment field ever since it looked at a property in the Florida Keys, which was then owned by Sunspire Health, a chain of addiction centers recently purchased by private equity investor Kohlberg & Co. TCO Equities did not ultimately elect to conclude the deal for the Florida property, but the developer's interest in the addiction treatment space was firmly established.

"We have made a decision that addiction treatment is going to be a good business to be in for the foreseeable future," says Michael Robert Carney, principal at TCO Equities. "The Chicago property is ideal for conversion into an addiction treatment facility."

By far the largest treatment provider in the Chicago treatment market is Gateway, which in its last fiscal year had $115M in revenue, making Gateway among the nation's largest non-profits. Hazelden also has a presence, in Downtown Chicago, as does Rockford, IL-based Rosecrance, also a non-profit.

The facility that TCO Equities envisions from the Chicago property, which is a large mansion located in the city's Beverly neighborhood, would be a high end facility in the mold of the Malibu market in Southern California. Malibu is home to dozens of high end treatment facilities in a sector that is unique in the national addiction treatment market, with centers in Malibu being almost exclusively located in mansions that have been converted in treatment centers.

The Chicago site sits on a 2+ acre corner lot, with 40+ parking spaces, in the Ridge Historical District in the Beverly neighborhood.

"We at TCO Equities have no expertise in delivering addiction treatment services," says Carney. "We are actively searching for a treatment operator partner to run the center."

Contact TCO Equities This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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