Manage Investments Through Carroll
Carroll Organization actively manages investments through Carroll sponsored investment funds, separately managed accounts, and joint venture partnerships. Our investments leverage our expertise in property management operations, which we feel gives us an advantage in understanding the risks and rewards inherent in multifamily real estate.
Carroll Organization has completed over $3.5 billion of multifamily apartment transactions and deployed over $1 billion of equity on behalf of institutional investors including: Goldman Sachs, Carlyle Group, Starwood Capital, Townsend Group, Crow Holdings, AIG, Investcorp, Bluerock, PIMCO, PCCP and W. P. Carey. We provide our investors comprehensive access to the real estate asset class and an appropriate risk adjusted return at all points in the investment risk spectrum. Our focus is on properties where we have the ability to add value through redevelopment and efficient management. Our range of investment vehicles gives investors the ability to tailor their real estate investment strategy to specific return objectives and risk tolerance levels and define their goals across many aspects in regards to current yield, capital appreciation, and leverage.
Value Add Strategy
Value add investments offer a strong balance of current cash flow and future appreciation. These assets are traditionally located in recovering primary markets as well as in secondary markets. Often, property rents are below market levels and present opportunities to increase cash flow by improving the physical conditions of the assets, implementing effective leasing strategies to retenant properties and improving management. Moderate leverage (60.0% to 70.0%) can enhance yield while still allowing for healthy debt service coverage. Overall returns in the value added sector currently range from 14.0% to 18.0%.
Core plus investments typically exhibit similar characteristics of core investments in both quality physical construction and prime location, but present more opportunity to increase NOI through organic rent growth, light renovation programs and improved management. Like core investments, a large majority of the return will come in the form of current yield with a smaller percentage projected from price appreciation. Overall returns currently range between 10.0% and 14.0% and leverage levels tend to average 50.0% to 60.0%.
Core assets typically deliver a secure return, largely generated from ongoing current property cash flow. Core properties tend to be well leased, located in major markets and built in the most sought after locations in these markets. The core category offers lower overall returns which are below 8.0% in the current market environment; however, investors view these returns as more secure given strong demand for these properties and lower leverage levels traditionally used with these investments
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