Bloomington Collection
- May 21
- 3 min read
Updated: Jun 1
A 132-Unit Stabilized Multifamily Investment in Clarksville, Indiana
Offering Overview
Property Overview
Bloomington Collection is a 132-unit Class B workforce housing portfolio comprising two adjacent garden-style communities, Hazel Briar Court (70 units, 1997) and Walnut Springs (62 units, 1995), located on the same street in south Bloomington, Indiana. Acquired off-market at $14.7M ($111K per unit), the portfolio is priced significantly below replacement cost of $160K–$180K per unit and enters cash-flowing from day one, with in-place occupancy of approximately 97%.
Bloomington's multifamily fundamentals are anchored by Indiana University Bloomington, with record fall 2025 enrollment of 48,626 students, over $1 billion in annual research expenditures, and a direct workforce of approximately 13,000, alongside a diversified private-sector base including IU Health, Cook Medical, Simtra BioPharma, and Novo Nordisk, all within 12–15 minutes of both properties. The south-side submarket where both assets are located has zero approved conventional supply pipeline through the five-year hold period, creating a structurally protected operating environment for workforce rental housing.
The co-location of Hazel Briar Court and Walnut Springs on the same street is not incidental. It is the foundation of the investment thesis, enabling a single leasing team, consolidated maintenance infrastructure, and unified vendor relationships to compress per-unit operating costs from the first month of ownership.
Strategy
Bloomington Collection was acquired at a basis of $111K per unit, materially below the $160K–$180K replacement cost for comparable 1990s vintage product in the Bloomington market, at a 7.25% entry cap rate. Both properties are stabilized, income-producing assets on day one. The strategy is not a turnaround or a lease-up play. It is a rent normalization and operational efficiency story executed across a unified 132-unit platform.
In-place rents average $1,104 per unit against a current market of $1,294, a $190 gap documented by eleven active comparables leasing between $1,210 and $1,849 for comparable product in the same submarket. That gap is a function of passive ownership and underdeveloped marketing, not market weakness. Focused Capital's plan closes it systematically through disciplined lease-by-lease repricing at every renewal and new lease, supported by targeted capital improvements, professional digital marketing, RUBS implementation, and ancillary income programs, all executed with the cost efficiency available only to an operator acquiring both properties simultaneously.
Highlights
Acquired at $111K per unit, well below replacement cost of $160K–$180K, at a 7.25% entry cap rate
132 stabilized, cash-flowing units with approximately 97% trailing occupancy and no lease-up risk
$190 per unit rent gap to market, validated by eleven active comparables; full capture represents approximately $300K in annualized incremental NOI
Projected LP IRR of 16.8% | Equity Multiple of 2.07x | Average Cash-on-Cash of 6.01% | 8% LP preferred return
South-side submarket with zero approved conventional supply pipeline through the five-year hold period
Permanent demand anchor in Indiana University Bloomington, with record enrollment, $1B+ in annual research, and approximately 13,000 direct employees, alongside IU Health, Cook Medical, Simtra BioPharma, and Novo Nordisk within 12–15 minutes
Consolidated management platform under Birge & Held creates immediate economies of scale across 132 co-located units
Proforma underwrites to a conservative 3% annual rent growth against a market currently running at 4%+, leaving meaningful upside unrealized in the base case
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Focused Capital has partnered with more than 250 investors across a growing portfolio of multifamily real estate opportunities. Over 60% of our investors have returned for subsequent investments, and more than half found us through a referral from someone they trust. We look forward to earning that same trust with you.
