Investment Overview

Marcus & Millichap is pleased to present the Gas City School Apartments, a 19-unit apartment property in Gas City, Indiana. The property is subject to Section 42 rent and income restrictions, which expire in 2035. The Gas City School Apartments consists of thirteen 1-bed/1-bath units and six 2-bed/1- bath units. All of the units are restricted for Area Median Incomes (AMIs) of either 40%, 50%, or 60%. The 60% restrictions, however, have a ceiling which is near or at market-rate rent. The 50% units have a max allowable rent which is slightly below market, and then the remaining 40% units are the only ones significantly below market. Even considering the rental restrictions, rents are significantly below potential. If all rents were raised to their max allowable levels, the annual revenue could grow by over $35,000 (+33%). A stabilized Pro Forma NOI is projected to be double the current NOI. Gas City School Apartments offers 19 apartment units priced at an extremely attractive basis. This allows for strong cash-flow and cash-on-cash returns even with rent restrictions in place. There is also an opportunity to refinish the gymnasium space to house nine studio units. Not only would this increase rental revenue, it would also decrease expenses due to the gymnasium currently being common area space heated by the Landlord.