Carroll Organization Closes Out Fund V with Acquisition of Atlanta Infill Property
Carroll Organization, a national real estate investment company, announced today that it has acquired its final property for Carroll Multifamily Real Estate Fund V, L.P. (“Fund V”), The GoodWynn at Town Brookhaven in Atlanta, GA, and has subsequently ended the fund’s investment period. The fund’s final commitment reached $60 million, surpassing its initial $40 million target. Fund V was an important milestone for Carroll Organization as it was the first time the firm raised institutional capital in a fund format. The fund launched and held its first closing in October 2017.
The GoodWynn at Town Brookhaven is a 392-unit mid-rise property, built in 2010. The property is located in Town Brookhaven, one of Atlanta’s most desirable mixed-use communities. Town Brookhaven offers the residents of The GoodWynn walkability to Publix, Costco, LA Fitness, CinéBistro dine-in movie theater, and numerous shops and restaurants. The property’s amenities include a two-story health & fitness studio, zero-entry pool with poolside cabanas and grill stations, 705 Club featuring cyber café, coffee bar and billiards, and an expansive roof-top amenity deck. Carroll Organization’s business plan includes both unit interior and amenity renovations. Carroll Organization acquired The GoodWynn at Town Brookhaven as part of a joint venture with PCCP, LLC a real estate finance and investment management firm focused on commercial real estate debt and equity investments.
Throughout its 18-month investment period, Fund V worked alongside six different joint venture partners to acquire a diversified portfolio of sixty-four multifamily properties with a total purchase price of $3.0 Billion and over 20,000 units across six states in the Southeast: Georgia, Florida, North Carolina, South Carolina, Tennessee, and Texas. Fund V consists of both Class A and B suburban and urban multifamily properties in major Southeast markets, with an emphasis on value housing near major employment centers. Fund V has utilized 65-70% debt on average, targeting mid-teens levered returns. To date, Carroll Organization has sold ten properties (2,742 units) in Fund V with a combined sales price of $353 million; these realized dispositions have achieved an average IRR of 28%.
"We are grateful to our investors for their commitment to our latest venture and are pleased with Fund V’s diversified portfolio,” said M. Patrick Carroll, Chief Executive Officer of Carroll Organization. “Our team did a phenomenal job sourcing these compelling investment opportunities and deploying the capital over a short 18-month period. We are eager to continue the execution of our business plans and realize superior risk-adjusted returns for our investors.”
Carroll Organization has now purchased nine properties totaling over $445 million in 2019 and is continuing to actively purchase high-quality multifamily communities in the Southeast, Southwest, Midwest, and other strategic target markets across the country. Carroll Organization 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.