As the real estate investment market continues to show strength, Atlanta-based CARROLL maintains a commanding presence in this competitive national arena. In 2021 Q3, CARROLL Founder and CEO M Patrick Carroll led the firm’s execution of two significant achievements in the expanding multifamily housing sector.
Specifically, CARROLL enhanced its multifamily properties portfolio with the purchase of a newly built Santa Rosa Beach, Florida multifamily community. In addition, CARROLL further expanded its property management services purview by adding three Louisville, Kentucky multifamily assets to the Company’s project roster. During the past year, the Company has executed eight third-party property management contracts.
CARROLL’s acquisition of another strategically located multifamily community, and its entry into a new property management services market, signal the firm’s increasing prominence in the real estate investment market. CARROLL is well-positioned to undertake additional investments and management contracts in the coming year.
Acquisition of Newly Built Florida Multifamily Community
CARROLL recently increased its Florida Multifamily holdings with its September 2021 purchase of the Ariza Forest View community in Santa Rosa Beach. Led by Founder and CEO M Patrick Carroll, the Atlanta-based real estate investment firm acquired the 283-unit community through the Carroll Multifamily Venture VI, LP, the Company’s institutional funding vehicle.
The newly acquired multifamily property, a garden-style complex built in 2020, has been rebranded as ARIUM Santa Rosa Beach. Ideally located between Panama City Beach and Destin, the community is within easy driving distance of stunning beaches and popular tourist destinations.
ARIUM Santa Rosa Beach continues to exhibit impressive occupancy rates and rent growth in a submarket with supply constraints. CARROLL’s acquisition bolsters the Company’s Florida presence to over 8,500 units.
CARROLL’s Continued Florida Market Expansion
Since CARROLL’s 2004 launch, the Company has steadily grown its presence in multiple Florida markets. For perspective, CARROLL has thus far completed 64 property transactions that involved almost 24,000 units.
Florida represents a very desirable market for CARROLL and its institutional investors. Along with the state’s continued population growth, it offers a pro-business climate and important tax advantages. Taken together, these positive attributes ensure that Florida will continue to be part of CARROLL’s growth strategy.
Large-scale Multifamily Investment Strategy
CARROLL’s latest multifamily community acquisition is one of 17 transactions completed in 2021 (thus far). Collectively, the transactions involved 6,250 units, and the properties’ total value is close to $1.3 billion.
The CARROLL property acquisitions reflect the Company’s plan to expand its multifamily assets in strategic markets. Under M Patrick Carroll’s leadership, CARROLL continues to purchase quality multifamily complexes throughout the United States. Particular areas of interest include the Southeast along with the Southwest and Mountain West regions.
Increased Demand for CARROLL’S Third-party Management Services
CARROLL’s third-party management services continue to enjoy robust demand. During the last 12 months, the Company has added eight third-party contracts (or almost 2,500 units) to its management portfolio.
To illustrate, in September 2021 a New York investor tasked CARROLL with the management of three Louisville, Kentucky multifamily assets. Collectively, the Enclave at Breckenridge by ARIUM, Station J-Town by ARIUM, and Stonewater Park by ARIUM totaled 996 units.
This new market opportunity provides evidence that the client is confident about CARROLL’s ability to deliver optimal results. To attain its targeted goals, CARROLL will rapidly increase the communities’ occupancy levels. In addition, the Company plans to increase the pace of rent growth to match solid market fundamentals.
CARROLL Delivers Proven Turnkey Solutions
Institutional real estate investors frequently partner with professional property management firms. CARROLL’s ability to deliver an enhanced turnkey solution has positioned the Company as the clear choice for superior property management services.
CARROLL’s extensive real estate investment expertise enables an intimate understanding of prospective clients’ partnership criteria. Specifically, CARROLL is cognizant that both parties must bring substantial value to realize a mutually beneficial business alliance.
Diverse Services Package Draws Strong Investor Interest
CARROLL provides exceptional management services on an in-house basis, enabling a smooth transition for the property owner and property-based teams. This effortless execution optimizes revenue and net operating income (or NOI) from the outset.
The Company’s well-rounded, scalable services package offers a second-to-none property operations platform. CARROLL has also earned industry recognition for its asset management and construction management program capabilities.
To enhance awareness of clients’ brands, CARROLL utilizes its full-service NOCTURNAL advertising and marketing services suite. Additionally, the Company offers its clients a well-coordinated package of hardware and software technology. Each client benefits from a custom solution tailored to the firm’s investment goals and operational parameters.
CARROLL Delivers a Strong Value Proposition
CARROLL’s management of The Brooke by ARIUM, its latest mandate completion, aptly illustrates the Company’s third-party management services’ value proposition. During CARROLL’s 12-month community management contract, which ran from July 2020 through August 2021, CARROLL achieved success in several key metrics.
To begin, CARROLL realized a decrease in concessions of over $2,300 per month, reduced to zero concessions at the contract’s conclusion. In addition, the Company’s 30-day average new-lease growth displayed a 24% increase.
Further achievements include a $50 average occupied rent increase that generated additional revenues. Equally importantly, the community’s average occupancy rate grew from 91.5% to 94.3% during CARROLL’s management purview.
David Perez, CARROLL’s Chief Operating Officer, emphasizes that the Company’s continued growth results from M Patrick Carroll’s keen understanding of the third-party management services arena. Specifically, CARROLL’s ability to execute its targeted plans and produce positive investment returns highlights the firm’s leadership in this highly competitive landscape.
“Investors turn to CARROLL when they want a management partner who has the ability [to]identify a prudent path toward adding value to their property,” stated Perez. “We believe in aligning our goals and building collaborative relationships with our partners in order to enhance investment value,” he concluded.
Why Multifamily Communities Represent a Promising Investment
CARROLL’s laser-like focus on the multifamily housing sector is driven by entrepreneur M Patrick Carroll’s astute real estate market analysis capabilities. With a longtime focus on the factors that drive market trends, he recently noted that a large-scale migration from cities to suburban areas is underway.
The groundwork for today’s migration trend was laid after the Great Recession of 2008. Many people were drawn to urban markets that offered a host of amenities along with convenient employment, shopping, and dining options.
In 2021, many consumers are returning to the suburbs, attracted by more affordable housing and easy access to expansive outdoor spaces. However, these new residents still want the amenities and conveniences that they enjoyed in their city homes and apartments.
In addition, many employers who were forced to adopt a pandemic-era remote work structure have permanently shifted to a remote-based business model. Other online workers and field-based business owners appreciate the flexibility and cost savings that remote work provides. As a result, there is a rising demand for properties that offer spacious floor plans with room for a home office.
Equally importantly, homebuyers are increasingly seeking a no-maintenance lifestyle. With often-limited downtime, these residents want to spend time with their families and enjoy the outdoors rather than be burdened by home and landscape maintenance.
CARROLL Offers Proven Multifamily Market Expertise
Collectively, these factors are driving increased demand for multifamily housing options. Investors with properties that meet these criteria, or that can be upgraded to attract today’s consumers, are well-positioned to realize good returns. CARROLL’s top-tier property management services have been the pivotal factor for a growing number of institutional real estate investors.
M Patrick Carroll’s team leverages extensive in-house data and analytics resources, identifying the best path forward for each investor. With this structure in place, CARROLL mobilizes resources and maintains cohesive team communication that enables optimum results.
About M Patrick Carroll
M Patrick Carroll, CARROLL’s dynamic Founder, developed his real estate investment career vision in his early 20s. Working as an Atlanta-based clothing representative, Carroll began laying the groundwork for his entry into the real estate industry. Besides acquiring well-rounded business world knowledge, he cultivated connections with successful business owners.
In 2004, M Patrick Carroll resigned his job and launched CARROLL, his new real estate investment firm, into the highly competitive Atlanta market. Buying his first condo home with a 100% mortgage, Carroll quickly flipped the property for a profit. After becoming proficient in this market segment, he branched out into single-family home construction.
At age 27, M Patrick Carroll developed and sold a 150-home housing development. With the proceeds from that transaction, he purchased three property management firms. His success in that endeavor served as a springboard for his subsequent achievements in the property management field.
Today, M Patrick Carroll is the driving force behind CARROLL’s high-profile commercial real estate investments. Working with domestic and international institutional investors, he leverages CARROLL’s extensive in-house resources and industry partnerships to achieve optimal returns for the firm’s clients.
About CARROLL
The CARROLL real estate investment firm is a privately held corporation headquartered in Atlanta, Georgia. Founder and CEO M Patrick Carroll established the firm in 2004, and he remains at the helm of this top-tier commercial real estate investment company.
CARROLL offers a multifaceted suite of client services. The firm is well known for its investment management, property oversight, and construction management capabilities. Each client receives a distinctive services package tailored to the firm’s specific needs.
CARROLL’s Strategic Real Estate Investment Decisions
For perspective, M Patrick Carroll has managed CARROLL’s execution of more than $12.9 billion of real estate purchases, development programs, and property sales. CARROLL-driven funds and joint ventures have generated over $2.7 billion of equity as of June 2021.
When key market indicators pointed to timely market exits, M Patrick Carroll executed over 88 property dispositions. These liquidations resulted in $4.2 billion of sales proceeds and generated a ~26% average gross internal rate of return (or IRR).
Strong Focus on Multifamily Communities
CARROLL has become known as a leader in the multifamily community investment arena. In addition to acquisitions, the firm maintains asset, property, and fund management capabilities. Currently, CARROLL manages almost 30,000 multifamily units throughout multiple states. The Company has also purchased other United States-based multifamily operators/owners.
The Company has also demonstrated expertise in the single-family home, student housing, and retail development arenas. Finally, CARROLL has completed over $250 million of construction management work for its firm-owned assets and fee partners’ investments.
CARROLL’s Distinctive Investment Philosophy
To identify commercial real estate investment candidates, CARROLL’s specialized market analysis team monitors underperforming or undervalued properties. In certain cases, this extensive due diligence goes on for several years as the team searches for the right investment target.
Concurrently, the market analysis team tracks emerging trends, cognizant that industry leaders may act on relevant opportunities. While other investors follow the market leaders, CARROLL finds opportunities in often-forgotten market segments that align with the organization’s investment goals. CARROLL has successfully used this approach to deliver impressive returns on its own portfolio properties as well as institutional investors’ holdings.
Today, CARROLL continues to branch out into new geographic markets and real estate opportunities. The firm’s Raleigh, Tampa, New York, and Houston offices provide clients throughout the United States with responsive, effective service.
As the 21st century continues to unfold, M Patrick Carroll and his team remain centered on the firm’s four guiding principles: excellence, focus, integrity, and passion. Together, these areas of focus continue to position the Company for long-term success.
