CARROLL Exits Assets Totaling $2.2 Billion Through Q3, Acquiring $1.3 Billion
Third Quarter Activity Includes Eight Transactions and a New Fund with $5.5B in Total Buying Power
CARROLL, an Atlanta-based national real estate investment firm, today released its third-quarter report highlighting strong performance throughout the year despite a challenging economic backdrop. In the third quarter, CARROLL continued to take advantage of the current environment by disposing of six assets while acquiring two, with dispositions now totaling $2.2 billion for 2022 and acquisitions totaling $1.3 billion. As the market recalibrates, these transactions reflect the Firm’s conviction to exit individual properties, as well as the confidence to continue acquiring and developing in these same core Sun Belt markets.
In wake of Hurricane Ian’s destructive path through Florida, CARROLL stands with all those individuals who were impacted by the historic storm, especially those who are residents or team members at CARROLL’s 43 communities across the state. In conjunction with rebuilding efforts, CARROLL is commencing blood drives and taking donations to help those affected by the storm. “Despite the severity and still emerging effects, we want to shine a light on our amazing communities, such as our ARIUM Citrus Run residents who were out at 5AM Thursday morning working to assist the crews and community leaders to clear their local streets,” said David Perez, President and COO for CARROLL. “These Florida communities that have been impacted are extremely resilient, and we feel blessed to be able to serve them and our broader communities alongside them.”
“As CARROLL continues to evolve in the midst of global economic uncertainty, I am continually impressed by the performance from our team of 750+ employees across the country,” said Patrick Carroll, founder and CEO of CARROLL. “2022 is a year in which our company is proudly reinvesting in key growth drivers, setting the stage for both short-term and long-term success. Despite the industry bracing for a downturn, I remain confident in CARROLL’s future because we have proven successful in any climate.”
Transactions and Portfolio Performance
From July to September, the Firm executed eight transactions across five states – two acquisitions and six dispositions – totaling $868.4 million in transaction volume. The two acquisitions, both communities in South Florida, bring CARROLL’s units under management in Florida to nearly 15,000. Year-to-date, CARROLL has acquired a total of 14 properties, amounting to 4,720 units. Notably, 58 percent of CARROLL’s 2022 acquisitions are in Florida, a key Southeast Sun Belt market and a state CARROLL first entered in April 2013.
CARROLL’s six dispositions included a four-property portfolio of nearly 1,500 units in some of the best performing sub-markets in the Atlanta Metro area. Another exit, a 520-unit community in Carrollton, Texas, represented the final asset from a portfolio CARROLL acquired in 2017, accounting for more than 1,100 total units. During the five-year hold, CARROLL and its partners successfully executed amenity upgrades as part of a value-add strategy, elevating the competitiveness of the asset amidst the rapid growth of the Dallas Fort-Worth MSA.
As in Q2, CARROLL’s third-party management solutions, led by Rob Gayle, Vice President of Business Development, continued its growth, acquiring three new third-party assignments representing more than 1,000 units. Year-to-date, the Firm has added more than 2,500 units across three states, reflecting the quality of the CARROLL property management platform as well as the respect it has amongst property owners. CARROLL expects continued growth in the fourth quarter with several new assignment deals pending, including a property lease-up in Atlanta.
Prioritizing Philanthropy and ESG
To coincide with the start of a new school year, CEO Patrick Carroll donated $100,000 worth of sneakers to 600 youth members of the Boys & Girls Clubs of Miami-Dade, surprising the children with a pizza party, t-shirts, a DJ, and a live painting by a local artist commemorating the charitable event. CARROLL plans to bring Kicks for Kids to other cities across the United States. In addition to helping out at the first Kicks for Kids event in Miami, employees across the U.S. donated a total of 130 hours of volunteer time to local organizations and causes in support of the CARROLL Community Impact Program.
As part of the Firm’s commitment to ESG, CARROLL formalized its ESG committee, which will serve as a review and selection group to further the Firm’s ESG goals and to streamline its processes. Current projects include reviewing and selecting social programs for partnerships that align with company values, implementing a standardized utility data collection process and platform, and overseeing the addition of smart technology to reduce environmental impact.
Investing in Residents
CARROLL’s multifamily brand, ARIUM, concluded its 20-week brand campaign, reaching three million renters across the country. The campaign included a 13-week singing competition called Sounds of Summer, which was a massive endeavor that showcased user-generated content submitted by approximately 200 ARIUM residents. In addition to the content from the residents, ARIUM partnered with influencers who judged the singers in new episodes that dropped weekly via Facebook Live. More than 140 watch parties were held across the U.S., allowing on-site teams and residents to share in the journey of their neighbors, fostering a powerful sense of community among watchers and participants everywhere.
For Sounds of Summer’s grand finale, ARIUM flew the five finalists to Atlanta – each hailing from a different ARIUM community in the U.S. – to perform on-stage in front of a live audience. Each finalist shined in the spotlight, singing in front of nearly 200 attendees, and performing a group song with Texas Hill, a trio of alums from television singing competitions. Each talented finalist walked away with free rent, AMEX vacation vouchers, and a once-in-a-lifetime experience to participate in a national singing competition hosted by ARIUM, one of the country’s leading apartment brands. Jason, a resident from an ARIUM community in Florida, was crowned the 2022 Sounds of Summer winner, winning $1,500 in cash (plus the other prizes) and received a framed golden record commemorating his achievement. Closing out the concert, David Cook, American Idol winner and platinum recording artist, performed.
Heading into Q4, CARROLL is well-positioned to find new investment opportunities that expand its portfolio and vertically integrated platform. The Firm’s ability to be nimble and execute deals in every climate is a testament to its unwavering strength. In addition to favorable market fundamentals, CARROLL’s seventh investment fund, which closed in August at more than double the size of the Firm’s prior vehicle, emboldens the company to make strategic investments despite the unknowns ahead in the marketplace.
CARROLL, a privately held real estate company, was founded in 2004. With headquarters in Atlanta, Ga., and regional offices in Dallas-Fort Worth, Raleigh, Denver, Tampa, New York, and Los Angeles, CARROLL focuses on multifamily communities, including acquisitions, community and asset management services, ground-up development, and fund management. The Firm has raised more than $4.4 billion of equity through CARROLL-sponsored funds and joint ventures. CARROLL has successfully purchased, developed, or sold more than $20.9 billion in real estate.
The company manages more than 32,000 multifamily units across nine states representing $7.6 billion in assets under management and has purchased other multifamily owner/operators throughout the U.S. CARROLL has also developed student housing, single-family residential, and retail communities, and has managed more than $500 million in construction projects throughout the past 10 years. From due diligence to execution, CARROLL has the internal capabilities and the external relationships to identify, underwrite, and close transactions. For more information, visit carrollorg.com.