Carroll Completed 17 Acquisitions Worth $900M So Far in 2018
"The dynamic of muted wage growth in the low-to-medium skill jobs and a growing middle-class renter cohort leads us to invest in the space that has the highest demand with little to no new supply,” says M. Patrick Carroll, chief executive officer of Carroll Organization.
ATLANTA, GA—Carroll Organization, a privately-held real estate company focused on multifamily investment, management, and development has completed seventeen acquisitions totaling more than $900 million across South Florida, Tampa, Jacksonville, Atlanta, Charleston, Raleigh-Durham, and Houston so far this year.
The firm says it also exited seventeen properties totaling more than $700 million, producing an average gross IRR of 32% and 1.7x equity multiple, and refinanced five properties returning an average of 20% of the capital invested.
Looking ahead to the fourth quarter, Carroll Organization says it has ten acquisitions and nine dispositions in the pipeline.
“We continue to execute a disciplined investment approach focused on markets and product that are durable and resilient over time,” says M. Patrick Carroll, chief executive officer of Carroll Organization. “With consumer debt levels at an all-time high and personal savings rates near an all-time low, coupled with mortgage rates rising, the outlook for the multifamily industry is bright. The dynamic of muted wage growth in the low-to-medium skill jobs and a growing middle-class renter cohort leads us to invest in the space that has the highest demand with little to no new supply.”
All of Carroll’s 2018 year-to-date acquisitions are in high-growth MSAs in the Southeast/Southwest with favorable multifamily fundamentals. Looking ahead to the fourth quarter and 2019, the firm will continue to target these markets, as well as Phoenix, Denver, Las Vegas, and the Mid-Atlantic. The outlook for multifamily performance in all these markets remains strong due to their diverse economies, business-friendly climates, job and population growth, and overall quality of life.
Since the beginning of 2012, Carroll has acquired 138 properties worth more than $5.9 billion, and disposed of 57 properties with a total sales price of more than $2.6 billion, producing an average gross IRR of 30% and 1.8x equity multiple. Carroll sourced many of its deals “off-market” directly from developers and owners and is recognized in the industry as a best in class, fully-integrated, owner and operator of multifamily real estate.