Gateway Crossing Apartments
- Chad Schieler
- Nov 13
- 2 min read
A 160-Unit Multifamily Community in Clarksville, Indiana
Property Overview
Gateway Crossing is a 160-unit Class A multifamily community with a boutique mixed-use component and small office space, located in Clarksville, Indiana—just minutes from downtown Louisville. Acquired significantly below replacement cost and paired with favorable assumable debt at a 3.53% fixed rate, the property offers strong in-place cash flow and long-term upside in a high-growth submarket.
Clarksville’s limited new construction pipeline and Louisville’s continued rent growth have created a stable, income-producing environment with room for performance improvement through enhanced marketing, operational efficiency, and select amenity upgrades.
Gateway Crossing also benefits from shared professional management with Focused Capital’s nearby asset, Heritage Square, creating operational efficiencies across more than 340 units in the same Louisville MSA.
Strategy
Gateway Crossing was acquired at a basis of approximately $143K per unit (including premium office space), well below the $160K–$180K replacement cost typical for new construction. The asset is stabilized and delivers immediate income, supported by strong market fundamentals and low-cost, assumable Fannie Mae financing.
The strategy focuses on leveraging economies of scale, optimizing management, and enhancing resident experience to drive NOI growth. Key initiatives include amenity upgrades, improved marketing and digital presence, and operational refinements to boost occupancy, reduce expenses, and increase overall efficiency.
Highlights
Acquired at ~$143K/unit including premium office, ~$140k/unit residential units only
6% cap rate at acquisition, outperforming comparable Class A properties trading around 5%.
Favorable assumable Fannie Mae debt at 3.53% fixed for seven more years, minimizing rate exposure.
Projected IRR: 15% | Equity Multiple: 2.0x–2.44x | Average Cash Flow: ~7.5%.
Tax abatement in place, phasing out over 7–10 years.
Shared management with Heritage Square provides economies of scale across 340+ units.
Located within the Louisville MSA, a market averaging 3.5%–4% annual rent growth—well above the national average.
Boutique mixed-use component adds income diversification and community appeal.
Focused Capital effortlessly maximizes and streamlines real estate investments.
Teaming up with over 250 individuals, just like you, we've delved into real estate ventures, generating passive income. Impressively, over 60% of our clients return for further investments, with over half joining us through referrals.
We are Focused on Growing Your Wealth So That You Can Do What You Love