Investment Overview

Marcus & Millichap is pleased to present Bend Avenue Student Housing, two premier student rental houses for sale at Notre Dame in South Bend, IN. The two addresses for the homes are 806 S Bend Ave and 627 N Saint Peter St. The homes are across the street from each other, and they are just 0.6 miles south of Notre Dame’s campus. The properties were built in 2008, and they have a unique configuration which is particularly appealing to college students. Both homes are three stories. The middle level consists of spacious common areas including a large kitchen, family/living room, laundry room, and dining area. On each of the upper and lower levels are two private units, with each unit containing two bedrooms (and each house totaling 8 bedrooms). These units have a shared space within them with a hang out area and kitchenette. Then each student has their own private bedroom with a shared jack-and-jill bathroom. This is significantly superior to the typical older single-family residence which was converted to a student rental. Those competing properties have significantly lower bed/bath ratios, no private kitchenettes in the bedroom areas, and haphazardly configured layouts which do not offer the same levels of privacy. Most of the student rental homes which are direct competitors are also newer construction, purpose-built properties. Many of these have attached garages (the subject property does not), and their rents tend to range from $1,200 to $1,500 per bedroom. Another very comparable property is Legacy Village, which consists of purpose-built homes for student housing built in 2010 which do not have garages, and these homes are averaging $1,225 per bedroom. The in-place rent at the Bend Ave Homes is currently only $850! If rents were to be increased to $995/bedroom/month, that would be an increase of 17% while still keeping The rents below all of the most direct competitors. The Bend Avenue Homes present the prospective investor the opportunity to acquire purpose-built, 2000s-construction, student rental homes a half mile from the campus of Notre Dame University. Rents appear to be substantially under-market without the need for any renovations, making this an attractive and simple value-add opportunity.