CARROLL recently executed another real estate transaction, finalizing the sale of four multifamily communities throughout the Southeast. The four properties represented nearly 1,300 units of the company’s portfolio and are the latest transaction “fueling CARROLL’s momentum as [the company] begins looking toward the new year.” Michael Patrick Carroll, Founder and CEO of the privately-held real estate company, spearheaded the transaction.
In response to the transaction, M Patrick Carroll stated, “The entire portfolio represented communities in highly desirable Sun Belt markets that were acquired at an attractive basis with ample operational and capital upside potential. The deals outperformed original projections and provided an excellent product for our residents.”
Properties sold in the transaction included Edgewater Plantation, ARIUM Cumberland, ARIUM Mooresville, and ARIUM South Oaks.
The first, Edgewater Plantation, was acquired in 2016 and represented the company’s first acquisition in the Charleston metropolitan statistical area (MSA). The team identified the opportunity as a way to capitalize on Mount Pleasant’s population growth, excellent schools, strong work base, and high quality of life.
The latter three – ARIUM Cumberland, located in the Atlanta MSA; ARIUM Mooresville, located in the Charlotte MSA; and ARIUM South Oaks, located in Nashville MSA – were acquired in 2019. Each property was uniquely identified as a location near a major employment center and areas offering high job and population growth. Each also boasted a favorable business climate, low cost of living, and overall quality of life.
The firm leveraged a value-add investment strategy for all four properties, renovating unit interiors and underutilized amenity spaces.
M Patrick Carroll reported, “After executing our respective business plans and effectively balancing the remaining enhancement opportunity for the next owner, we elected to monetize our investment at the optimal point in the current cycle to maximize returns for our investors.”
The sale was executed through its investment vehicles, Carroll Multifamily Real Estate IV and Carroll Multifamily Real Estate Fund V, LP. Year-to-date, CARROLL has executed seventeen dispositions and seven acquisitions, totaling $1.8 billion in transaction velocity in 2021.
2021 Transactions
Earlier in November, CARROLL, in partnership with PGIM Real Estate, executed three portfolio sales totaling $1.1 billion. In total, 12 communities with 4,121 units across Florida, North Carolina, and South Carolina were disposed of. Included in the sale were six Raleigh communities (ARIUM Southpoint, ARIUM Kildaire, ARIUM Weston, ARIUM Lake Lynn, ARIUM Lake Johnson, and ARIUM Trailwood); three Charleston communities (ARIUM North Charleston, ARIUM St. Ives, and ARIUM Mt. Pleasant); and three South Florida communities (ARIUM Boca Raton, Centro at Davie by ARIUM, and ARIUM Boynton Beach). The 12 communities were part of three separate joint venture transactions between institutional fund vehicles managed by PGIM Real Estate and CARROLL in 2018.
On the deal with PGIM Real Estate, M Patrick Carroll reported, “Closing on these 12 properties is a big win for us and our investors. These communities offered tremendous upside in 2018 to both strengthen our partnership with PGIM Real Estate and expand our Southeast portfolio. We purchased the Raleigh and South Florida portfolios as value-add opportunities and Charleston was acquired as part of our workforce housing platform. Throughout our hold, we successfully achieved our goal of improving resident life through strategic upgrades and high-quality service – relying on our proven strategy to exceed expectations.”
In September 2021, CARROLL exited two adjacent multifamily communities, Flats on the Trinity and Estates on the Trinity, in Fort Worth, Texas. Totaling 405 units, both mid-rise riverfront properties were acquired four years prior through CARROLL’s institutional fund vehicle, Carroll Multifamily Real Estate Fund V, LP. Both properties are well-located in one of Fort Worth’s most desirable downtown neighborhoods and overlook the Trinity River with direct access to the Clearfork Trinity Trail.
Earlier this year, the firm sold ARIUM Park West – a 342-unit garden community in suburban West Houston. The firm had purchased the property six years ago and repositioned the apartment community by implementing a value-add strategy.
The company also sold three suburban properties in the first quarter – ARIUM Pinnacle Ridge in Raleigh, North Carolina; ARIUM Towne Lake in Houston, Texas; and The Marin by ARIUM in Fort Lauderdale, Florida. Together, these properties were valued at more than $170 million and represented more than 900 individual units.
However, the year has not been all about dispositions, although leveraging today’s high real estate values has proven to be a strategic move for the firm.
CARROLL also acquired 282 units in Atlanta, bringing the present number of units under management in the metro area to 6,500. It also acquired Ariza Forest View, a 283-unit community in Santa Rosa Beach. Rebranded as ARIUM Santa Rosa Beach, the recently built (2020) garden-style community exhibits strong occupancy and rent growth in a supply-constrained sub-market.
Earlier this year, CARROLL purchased five multifamily communities in St. Petersburg, Florida; Palm Harbor, Florida; Ocoee, Florida; and Las Vegas, Nevada. Adding nearly 2,400 units to its portfolio, CARROLL acquired the assets for a total of $495 million.
In addition to its high transaction velocity, CARROLL has made headway as a premier property management partner for U.S. real estate ventures. In September, the firm announced the addition of its eighth third-party assignment in 12 months, adding up to 2,500 units under the firm’s management.
David Perez, chief operating officer at CARROLL, reported, “Investors turn to CARROLL when they want a management partner who has the ability [to] identify a prudent path toward adding value to their property.” He continued, “We believe in aligning our goals and building collaborative relationships with our partners in order to enhance investment value.”
Since its 2004 inception, CARROLL has raised more than $2.9 billion of equity through CARROLL-sponsored funds and joint ventures. CARROLL has also successfully purchased, developed, or sold more than $13.8 billion of real estate.
CARROLL: The Industry Standard for Multifamily Real Estate Investment
CARROLL is widely recognized as the standard-bearer in multifamily real estate investment due to its consistent ability to make sound and profitable transactions as well as provide quality rental opportunities. The firm has built its brand on outperforming the market and giving investors higher returns than its competitors. M Patrick Carroll has an innate ability to foster and maintain relationships with both strategic partners and investors. As a result, CARROLL has successfully built a self-sustaining, profitable investment cycle that is unique in the industry.
As the COVID-19 pandemic starts to recede, M Patrick Carroll is betting big on emerging cities for a multitude of reasons. He believes the company has identified quality upcoming markets with strong potential for highly-profitable multifamily investment. Multifamily performance forecasts are optimistic in these Sunbelt cities precisely because of their quality of life, diverse and business-friendly environment, and population growth. Simply put, those markets are moving.
With M Patrick Carroll leading the way, CARROLL is well-positioned to maintain its role as an industry leader and market mover. Given the volatility of the pandemic environment for all industries, leaders who have a steady hand and a proven track record are valued at an even higher premium than usual.
About M Patrick Carroll
Michael Patrick Carroll, entrepreneur and philanthropist, is the founder and CEO of CARROLL, a privately held real estate investment firm headquartered in Atlanta, Georgia. Throughout his career, M Patrick Carroll has spearheaded the acquisition of 60,000 multifamily units, and his firm’s current portfolio includes 30,000 residential and commercial properties across the East Coast.
M Patrick Carroll also serves as a board member of the Boys and Girls Club of Tampa, Florida, and mentors high school-aged students. He is also part owner of Società Polisportiva Ars et Labor, commonly known as SPAL, a historic football team from Ferrara, Emilia-Romagna, Italy.
About CARROLL
Founded in 2004 by M Patrick Carroll, CARROLL is a privately held real estate company that focuses on multifamily communities, including acquisitions, property and asset management services, and fund management. The firm has also developed student housing, single-family residential, and retail communities, and has overseen more than $250 million of construction management for both its owned and fee-based partners.
Since its inception, the firm has acquired nearly 60,000 units and completed 272 transactions for a total volume of $13.1 billion. To date, the firm has $5.8 billion of assets under management.
CARROLL’s headquarters are in Atlanta, Georgia, with regional offices in Houston, Texas; Raleigh, North Carolina; Tampa, Florida; and New York, New York.
