ATLANTA—Carroll Organization just announced the initial closing of a new private investment fund. Carroll Fund II will provide buying power to acquire up to $600 million worth of multifamily communities in the Southeast and Texas.

“The market for high quality multifamily is extremely competitive, and for good reason—buyers can get great returns for what is perceived as relatively low risk,” Patrick Carroll, founder and CEO of the Carroll Organization, tells GlobeSt.com. He expects his firm to be extremely competitive in this environment because it can close large acquisitions.

“We're now being flooded with opportunities that I don't think we would have been brought a year ago,” Carroll says. “There is a surety of close with Carroll as the buyer.”

Carroll’s strategy is to acquire class A and class B-plus multifamily communities in strong markets. The firm is looking for opportunities where its management capabilities can help produce above-average returns.

The private equity fund will be used in partnership with institutional investors, including the firm’s existing joint venture partners. While the fund has reached its initial closing goal, it remains open to additional investments.

“I think there is just as much opportunity this year as there was last year,” Carroll says. “Cap rates have compressed a little, but interest rates—our cost to borrow—are also lower then they were when we first started buying. While it is more competitive, we are by no means lacking for new opportunities.”

This is the firm’s second real estate private equity fund. The first, Carroll Fund I, led to the acquisition of $150 million worth of multifamily real estate—a total of 1,600 units—since the fourth quarter of 2011. The firm leveraged existing relationships to pursue successful off-market transactions and rare investment opportunities. And Carroll Fund II won’t be the firm’s last.

“I hope to be answering questions about ‘Carroll Fund 20’ one day,” Carroll says. “I love the idea of tweaking our business plan every two or three years, and raising a fund to execute on that plan. Obviously to continue to raise capital we need to do a great job at buying and operating properties for our investors, which we plan to do.”