Carroll Organization and PGIM Real Estate have continued to advance their multifamily joint venture partnership with three portfolio acquisitions in Raleigh-Durham, Ponte Vedra Beach and Charleston, totaling a combined ~$600 million. Carroll Organization, acting on behalf of its latest investment vehicle, Carroll Multifamily Real Estate Fund V, LP, is one of the country's leading privately held real estate companies focused on multifamily investment, management and development. PGIM Real Estate, acting on behalf of institutional investors, is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc.(NYSE: PRU).
These transactions mark the fifth joint venture between PGIM Real Estate and Carroll Organization since December 2017. To date, these joint ventures have resulted in $2 billion in acquisitions across 45 properties and approximately 15,000 units throughout Florida, North Carolina, Tennessee, Texas, and South Carolina. All of the assets are managed by Carroll Management Group.
"These latest portfolio acquisitions are consistent with PGIM Real Estate's strategy to pursue workforce housing investments in well-located, pro-business metropolitan markets with a limited supply of apartments and a robust demand for affordable housing options," said Alfonso Munk, Americas chief investment officer for PGIM Real Estate. "Our ongoing partnership with Carroll Organization will enable us to create an enhanced living experience for the residents at these 13 communities, while delivering compelling, supply-resistant investment opportunities to our investors."
The venture's latest Southeast multifamily investments include:
Eight-Property Portfolio in Raleigh-Durham
- An eight-property, 2,883-unit multifamily portfolio located in the Raleigh-Durham area.
- The portfolio includes: Copper Mill in Durham; Meadows at Kildaire in Cary; Oaks at Weston in Morrisville; Spring Forest in North Raleigh; Crest at West End in Carrboro; and Reserve at Lake Lynn, Walnut Creek, and Woodland Court in Raleigh.
Two-Property Portfolio in Ponte Vedra Beach
- An adjacent two-property, 480-unit multifamily portfolio located in Ponte Vedra Beach, Florida.
- The portfolio includes Soleil at Ponte Vedra Beach and Seaglass at Ponte Vedra Beach.
Three-Property Portfolio in Charleston
- A three-property, 680-unit Class B multifamily portfolio in Charleston, South Carolina.
- The portfolio includes Cooper's Pointe Apartments, Springhouse Apartments and Hibben Ferry Apartments.
"These investments are based on our thesis that quality workforce housing is currently an underserved segment of the multifamily market, which has created a supply/demand imbalance when home ownership or new-supply rents in desirable locations may not be attainable for most Americans. The outlook for multifamily performance in the Raleigh-Durham, Jacksonville and Charleston markets remains strong going forward due to their diverse economies, business-friendly governments, job and population growth, and overall quality of life," said M. Patrick Carroll, Chief Executive Officer of Carroll Organization. "We are thrilled to continue our positive momentum with PGIM Real Estate with these acquisitions and look forward to doing more business together in 2019."
The Raleigh, Ponte Vedra Beach and Charleston acquisitions were led by Jim Mehalso, Atlanta-based managing director and head of Southeast Transactions at PGIM Real Estate, and Josh Champion, president and chief investment officer for Carroll Organization.