Have Carroll's View on Multifamily Changed?

ATLANTA—Carroll Organization has made a name for itself doing off-market multifamily deals. Now, it's divesting itself of one those strategic acquisitions it inked in 2011.

Carroll sold Carroll at Bethesda Park in joint venture with Lubert-Adler Real Estate. JLL's David Gutting and Derrick Bloom represented Carroll in the sale. Bethesda Park is a 222-unit luxury multifamily community in the Lawrenceville submarket of Gwinnett County, GA.

“In a dynamic market like ours, you have to be ready and able to take advantage of opportune acquisitions as well as dispositions,” says M. Patrick Carroll, CEO of Carroll. “From the way we finance deals to our management process, every aspect of our business is structured in a way for us to be increasingly nimble; this is one of our competitive advantages.”

Built in 2001, the gated multifamily community is an institutional quality asset. Floor plans offer one- two- and three-bedrooms ranging from 840 to 1,852 square feet. Amenities include a saltwater resort-style pool with sundeck; common grounds with grills and picnic areas; a fitness center; business center with coffee bar; and lighted tennis court. Carroll invested an undisclosed sum in targeted capital improvements on the multifamily asset before selling it.

The divesture seems counter to Carroll's recent moves. In 2013, Carroll acquired over $1 billion in multifamily properties in Texas, Florida, Georgia, and Tennessee. Carroll has already closed over $100 million in multifamily acquisitions in 2014 and reports a “robust” pipeline of investments going into the second quarter. Has Carroll's view on multifamily change?

“Although we remain bullish on the multifamily market, we saw a valuable opportunity to sell Bethesda Park and lock in gains for our investors,” Carroll says. “Our value-add strategy was executed as planned, our property management team operated the property exceptionally well, and the sale caps a solid three years of ownership. The property met all of our return expectations and it will continue to create value for the new ownership group.”