After a Strong Start to 2017, Carroll Organization Carries Momentum into Second Half of the Year

  • Thursday, June 29, 2017

 

Atlanta, GA — Carroll Organization, one of the country's leading privately-held real estate companies focused on multifamily investment, management, and development closes an exciting first six-months of 2017 successfully completing seven acquisitions totaling over $370 million. Carroll acquired properties in Dallas, Orlando, Tampa, and Charleston. These properties will be a part of Carroll's latest investment vehicles, Carroll Multifamily Real Estate Fund IV, LP and Carroll Multifamily Real Estate Fund V, LP. In addition, the firm exited two properties totaling over $135 million producing an average gross return of 38% and 2.4x equity multiple. Carroll Organization has a lot of positive momentum going into the second half of the year with numerous acquisitions and dispositions in the pipeline.

 

"2017 started with uncertainty surrounding the new presidential administration and capital markets, which resulted in much of our competition sitting on the sidelines for the first few months of the year. During that time, we were able to close seven acquisitions including some excellent off-market opportunities," said M. Patrick Carroll, Chief Executive Officer of Carroll Organization. "We have focused our efforts in 2017 on acquiring high-quality 1990s-2000s vintage product in desirable locations, in need of light to moderate renovations, and at valuations below replacement cost."

 

All of Carroll's 2017 acquisitions are located in high-growth MSAs in the Southeast/Southwest with favorable multifamily fundamentals, including Dallas-Fort Worth, Orlando, Tampa, and Charleston. Dallas-Fort Worth continues to be among the top employment markets in the country with annual job gains in excess of 100,000 for the last several years, which has fueled strong multifamily demand and attracted a tremendous amount of institutional capital to the market. Central Florida [Orlando and Tampa] continues to diversify its economies and post some of the nation's highest job gains on a percentage basis, while also limiting its multifamily supply pipelines. Charleston is also among the nation's leaders in population growth, adding 15,000 newcomers per year and adding rental households at 12.5% annually (6th in the nation). The outlook for multifamily performance in all of these markets remains strong going forward due to their diverse economies, business-friendly governments, job and population growth, and overall quality of life.

 

Carroll has now purchased twenty-two properties totaling over $1.2 billion since the beginning of 2016 and is continuing to actively purchase high-quality multifamily communities in the Southeast and Southwest, and other strategic target markets across the country. Carroll sourced many of its deals "off-market" directly from developers and owners, and is recognized in the industry as a best in class renovator and operator. To date, Carroll has successfully exited thirty-one assets valued over $1.2 billion. These realized investments have produced an average gross IRR of 30% and 1.9x equity multiple.