TMCnet Feature
July 13, 2021

CARROLL's M. Patrick Carroll Readies Launch of Seventh Multifamily Investment Fund



Leading Atlanta-based real estate investment firm CARROLL is building the framework for its seventh multifamily investment fund. Helmed by Founder and CEO M. Patrick Carroll, the Company plans to raise over $500m for the fund, which is projected to launch during the latter part of 2021.



Real estate investment leader M. Patrick Carroll is confident that the firm will reach (and exceed) its fundraising goal. He cites ongoing discussions with potential investors, and the Company’s previous successful fund performance, as key factors in his prediction.

“Investor interest is as strong as I’ve ever seen it,” Carroll emphasized. “Investors in this next fund will be a mixture of existing and new investors." The new fund will focus on building a higher target with a broader investor base.

CARROLL has engaged the services of Threadmark Capital, which will serve as the new fund’s placement agent. The firm specializes in generating capital for alternative investments, including real estate.

CARROLL’s Multifamily Fund Investment Strategy

CEO M. Patrick Carroll spoke candidly about CARROLL’s investment strategy for the soon-to-be-launched fund. The $5.2bn manager noted that the strategy would mirror that of the fund series, utilizing a core-plus and value-add approach.

However, the firm’s seventh fund will broaden its geographic focus, concentrating on Western United States suburban geographic areas. M. Patrick Carroll noted that institutional-level investors have expressed strong demand for Sunbelt multifamily properties. He added that two Las Vegas-area property deals are currently traveling through the pipeline.

CARROLL’s Case for Multifamily Housing Investments

After extensive market research, M. Patrick Carroll has identified several factors that present a strong case for multifamily housing investments. Carroll expressed his opinions in a January 19, 2021 post to his Forbes Real Estate Council profile.

Renewed Preference for the Suburban Lifestyle

Following the Great Recession of 2008, many people moved back to urban areas. Generally speaking, these residents were attracted to the cities’ often-vibrant lifestyles and available amenities.

In 2021 and beyond, real estate investor M. Patrick Carroll predicts an even bigger shift back to the suburbs. At the same time, consumers want to keep many attributes of their urban lifestyles. Specifically, many consumers are attracted to the maintenance-free living they enjoyed in their urban condos or apartments.

These consumers also desire a good quality of life. For example, they want access to generous outdoor spaces and walkable amenities close to their neighborhoods. In addition, they want to be located near their jobs and entertainment venues.

Not surprisingly, consumers also want to live in communities where their dollars have more purchasing power. Suburban areas have historically provided many affordable housing choices compared to urban area offerings.

By combining these factors with a growing remote work culture, there is a favorable environment in which multifamily rentals can thrive. This trend is likely behind institutional investors’ interest in this expanding market segment.

What the Seventh Fund Launch Means for CARROLL

CARROLL expects to fully capitalize its seventh multifamily investment fund. Once that occurs, the Company is poised to undertake substantial investments in a real estate market segment that has demonstrated strong potential. In turn, this increased visibility positions CARROLL as a top-tier partner in future investment scenarios.

About M. Patrick Carroll

M. Patrick Carroll is the Founder and CEO of CARROLL, an innovative and evolving Atlanta-based real estate investment firm. Carroll laid the groundwork for his real estate investment career in his early 20s. While living in Atlanta and working as a clothing representative, he dreamt of owning his own real estate company. 

During his four years in Atlanta, M. Patrick Carroll had learned about the finer points of growing a business. He had also developed numerous business connections. Many of these recognized business leaders played a role in bringing Carroll’s real estate company idea to fruition.

In 2004, M. Patrick Carroll launched CARROLL into the marketplace. At age 24, he wanted the company’s name to reflect his own boundless ambition. Since the inception of the company, M. Patrick Carroll has continued to lead as a confident, fearless and innovative expert, inspiring his team members to fulfill their professional goals.

Leading by example, philanthropist M. Patrick Carroll parlays his successes into targeted acts aimed at fostering confidence and opportunity, as well as making tangible changes for local communities. Through several philanthropic ventures that aid communities near his Arium Living Communities, M. Patrick Carroll remains committed to corporate social responsibility, philanthropy, and “paying it forward”.

About CARROLL

CARROLL is a multifaceted real estate investment firm that offers investment management, construction management, and property management expertise. M. Patrick Carroll founded CARROLL in 2004, making initial investments in targeted Georgia and Florida properties.

As of June 2021, CARROLL has raised over $2.7bn of equity via CARROLL-sponsored funds along with joint ventures. The Company has purchased, sold, or developed in excess of $11.7bn of real estate assets. CARROLL maintains offices in Houston, New York, Raleigh, and Tampa.

Overview of CARROLL’s Investment Strategy

CARROLL employs a two-component real estate investment strategy that has produced impressive results. First, the Company utilizes its substantial in-house resources to identify and acquire value in underperforming or undervalued properties.

Concurrently, CARROLL’s astute market analysts regularly monitor diverse real estate markets. When the team identifies an emerging trend, there is a strong likelihood that industry-leading firms will gravitate toward it.

Other firms invariably follow the market leaders, leaving untouched opportunities in one or more areas. When potential investments align with CARROLL’s objectives and resources, the Company confidently pursues them to fruition.

Active CARROLL Investments

In 2021, CARROLL is actively engaged in the deployment of CARROLL Fund VI, which has raised $140m to date. The firm also plans to close on a substantial Separately Managed Account (or SMA (News - Alert)) targeted for value-add multifamily investments, stated M. Patrick Carroll.

CARROLL is also considering an expansion into ground-up real estate development. The Company recently joined forces with LCOR, a real estate investment, development, and management firm that focuses on Mid-Atlantic and Northeast multifamily properties.

M. Patrick Carroll noted that the LCOR partnership would provide significant benefits for both parties. “Our partnership would combine LCOR’s expertise in development with our knowledge of the South-eastern US Real Estate markets, to target development opportunities. LCOR also has deep institutional capital relationships and a long history of successful development projects.”

CARROLL Investor Demographics

CARROLL’s corporate investors are typically insurance firms and pension funds. Collectively, 50% of CARROLL’s investors are from the United States with another 10% from the Middle East. Investors from Europe and other countries comprise the remaining 40% of CARROLL’s investment base. 

M. Patrick Carroll explains that CARROLL is actively seeking to diversify its investment partner base. “We are targeting more European and Middle Eastern investors, and investors from Asia, in addition to our existing LP base," he said.

The United States real estate markets continue to attract a global institutional investor base. With this environment as a backdrop, CARROLL is well positioned to offer attractive fundraising opportunities and diversified investments. By thoughtfully aligning emerging trends with targeted investment goals and resources, CARROLL will continue to thrive in the evolving 21st-century real estate arena.



» More TMCnet Feature Articles
SHARE THIS ARTICLE

LATEST TMCNET ARTICLES

» More TMCnet Feature Articles