For Sale: Memory Hall – 315 N. Lebanon Street, Lebanon, Indiana – CBRE Inc.


Investment Summary

CBRE has been retained as the exclusive investment advisor in the REO sale of Memory Hall, a historic landmark located in Lebanon, Indiana; the county seat of Boone County—immediately northwest of Indianapolis. The acquisition of Memory Hall presents the opportunity to acquire an adaptive reuse development with several value-add opportunities. The historic 59-unit property is the former Lebanon High School and gymnasium, converted to apartments for independent elderly tenants in 1996 utilizing Section 42 Federal Low Income Housing Tax Credits. The property was acquired through foreclosure in September 2012.

Value-Add Repositioning Opportunity: The property is currently 100% occupied; however, rents are well-below competing properties. The prior Section 42 rent restrictions were removed through the September 2012 foreclosure, presenting the opportunity for the new purchaser to increase rental rates to market on future leases.
Expense Reduction/Value Creation: Current taxes may be over-assessed. A post-sale adjustment could potentially result in a savings of $4,000. Insurance and management fee are above market, allowing for potential reduction and significant cost savings following acquisition. Purchaser should consider implementation of flat-fee utility bill-back for water, sewer and trash. The office currently occupies one unit (59th unit) which could potentially be moved back to a smaller adjacent office space or into the vacant commercial space. 
Historic Gymnasium & Commercial Income: The property includes an attached, two-story gymnasium which was featured in the film Hoosiers. The gym is separately parceled, and is currently leased by the property owner from the City of Lebanon for $1 per year. The buyer of Memory Hall would have the option to either purchase the gymnasium for $1 or continue the lease until the end of the term (July 31, 2014) at which time the lease hold interest will terminate. Additionally, the gymnasium parcel includes commercial space which currently generates sublease income.
Elderly Housing/Low Income Tenant Profile: Memory Hall was originally converted to senior housing (55+). Since takeover by the receiver in September 2012, the property has been leasing to residents under 55 years of age. However, the in-place tenant profile is still comprised of approximately 80% senior residents.

Location: The property is located within historic downtown Lebanon and offers a unique mix of shopping, dining and entertainment options. The property benefits from its close proximity to Indianapolis (15 miles), Lafayette (35 miles), Interstate-65, Interstate-465, and State Road-39.

Lebanon Business Park is less than two miles from Memory Hall and is home to some of Boone County’s largest employers.

Anson, a 1,700-acre mixed-use master-planned community is 10 miles southeast of the property and is home to major employers such as (1,100 employees) and Medco (360 employees).

Witham Health Services, a 52-bed hospital is two miles from the property. Witham Health Services has six locations within Boone County with a total of 685 employees. 


Offering Information

Offering Price: $1,200,000

Units: 59

Year Built: 1922; Converted in 1996


Exclusive Advisors:

Dane Wilson

Steve LaMotte, Jr., CCIM

David Englert

Carrie Ballard

Dave Lockard, CCIM

Emily Cantley

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