The Carroll Organization, an Atlanta-based real estate investment firm specializing in US multifamily assets, has received a cash infusion from Hanna Capital.
Under the terms of the agreement, the private equity and venture capital firm has bought a 10 percent stake in the Carroll Organization as part of a long-term strategic investment in the real estate manager’s future growth. With its equity stake, Hanna hopes to expand Carroll’s platform and help the firm accelerate its growth plan. Hanna also plans to provide additional capital for future growth.
“We met with [Hanna’s founding principals] Frank and David Hanna about being on our advisory board and, over those discussions, they decided they wanted to be more involved and make an investment in the firm,” Patrick Carroll, founder and chief executive officer, told PERE. “They liked our plans for the future and thought they could help.”
In a statement, Frank Hanna, CEO of Hanna Capital, said: “In a very short time, Pat Carroll has built an outstanding real estate investment firm with a strategy that is both disciplined and entrepreneurial, as well as a thoroughly professional team to execute on a business plan that creates long-term value.”
The Carroll Organization currently owns approximately 5,000 apartment units. With Hanna’s investment, the firm plans to grow its portfolio to 20,000 units by around 2015. Over the past 18 months, the firm has completed more than $400 million of multifamily acquisitions and expects to pass the half-billion dollar mark by the end of the second quarter.
Through this deal, the Carroll Organization also plans to fine-tune its business plan and develop its platform. “We’ve had a lot of growth over the last couple of years,” Carroll added. “Now, we also have a strong financial footing.”
The Carroll Organization primarily buys Class A and B+ multifamily properties in the southeastern US, specifically from Texas to Florida to Washington DC. “Atlanta and Houston are our biggest markets,” Carroll noted. The firm sources many of its deals off-market directly from developers and also likes to buy directly from REITs.
For more information on this new partnership and the Carroll Organization’s upcoming investment plans, be sure to check out the March issue of PERE.