Privately held multifamily firm CARROLL, in partnership with PGIM Real Estate have sold 12 multifamily communities, valued at more than $1.1 billion, in Florida, North Carolina, and South Carolina. The communities, which are comprised of 4,121 units, were part of three separate joint-venture transactions completed in 2018 between institutional fund vehicles managed by CARROLL and PGIM Real Estate.
The buyer was not disclosed. Included in the dispositions were three properties in Charleston, South Carolina; six properties in Raleigh, North Carolina; and three South Florida properties.
The communities in Raleigh—ARIUM Southpoint, ARIUM Kildaire, ARIUM Weston, ARIUM Lake Lynn, ARIUM Lake Johnson, and ARIUM Trailwood—and Charleston—ARIUM North Charleston, ARIUM St. Ives, and ARIUM Mt. Pleasant—had been purchased under CARROLL’s workforce value-add strategy. The South Florida communities—ARIUM Boca Raton, ARIUM Boynton Beach, and Centro at Davie by ARIUM—had extended the firm’s suburban presence with core-plus assets in high-growth markets presenting value-add upside.
“Closing on these 12 properties is a big win for us and our investors,” said M. Patrick Carroll, founder and CEO of CARROLL. “These communities offered tremendous upside in 2018 to both strengthen our partnership with PGIM Real Estate and expand our Southeast portfolio. Throughout our hold, we successfully achieved our goal of improving resident life through strategic upgrades and high-quality service—relying on our proven strategy to exceed expectations.”
According to CARROLL, at the time of the sale, each community was operating with strong occupancy and double-digit lease trade-outs. During the three-year hold, exterior and interior capital renovation projects were executed and CARROLL’s in-house property management team was leveraged to improve operational performance and drive rent growth.
“We are extremely pleased with the value that CARROLL and PGIM were able to add to the portfolio to improve the quality of living for the residents, while delivering an excellent outcome for our investors,” said Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate, the real estate investment manager of PGIM, a global asset management business of Prudential Financial. “We will continue to pursue investment opportunities in the Sun Belt market where there is a clear demand for affordable housing.”
Jim Mehalso, managing director of Southeast transactions, led the portfolio transaction for PGIM Real Estate, and chief investment officer Josh Champion led the transaction for CARROLL.
