Carroll holds first close on US multifamily fund

The Atlanta-based firm has raised 20% of its second co-investment vehicle’s target. Through the fund, it plans to be a minority partner in JV acquisitions.

The Carroll Organization, an Atlanta-based real estate investment firm, has held an initial closing on a small multifamily co-investment vehicle.

According to market sources, Carroll Fund II has closed on $10 million in equity commitments, or 20 percent of the fund’s target. The value-added fund is seeking $50 million in total commitments to invest in multifamily assets in the southeastern US (from Miami to Washington DC) and Texas.

In a statement issued by the firm, the Carroll Organization's founder and chief executive Patrick Carroll said: “We expect that demand in the multifamily market is and will remain strong for the foreseeable future.” As a result, the firm is “looking to acquire Class A and B+ communities in strong markets.”

Through the fund, the Carroll Organization plans to be a minority partner in joint venture acquisitions, committing 10 percent of the required equity for purchases. This gives the firm about $500 million in buying power, with one source telling PERE that it has several partners willing to contribute the remaining 90 percent of the required equity lined up for potential deals.

Approximately 35 investors are expected to contribute to Fund II, primarily institutions and family offices. The firm expects a final close in May 2013.

Previously, the Carroll Organization’s first fund closed on a little more than $50 million in equity. Through that fund, the firm bought approximately $150 million worth of properties.