The Carroll Organization is preparing to raise its third multifamily real estate fund, PERE has learned. Although representatives from the Atlanta-based multifamily specialist declined to comment, sources confirmed that the firm is gearing up to launch Carroll Multifamily Real Estate Fund III, a value-added vehicle seeking $250 million in equity commitments from high-net-worth investors, institutions and foreign investors.
Fund III, which is seeking minimum commitment of $500,000, is anticipated to launch in July. PERE understands that Carroll already has a good number of soft commitments from prior investors. A first close is expected to occur sometime in late October, with a final close 12 months afterwards in October 2014.
The commingled vehicle will follow the same strategy as that of Carroll’s prior two funds, which is to invest in multifamily assets in the US, with a focus on properties in the Southeast and Texas. Fund II closed on $125 million in equity last month, while Fund I closed on $30 million roughly 18 months ago. Both of those vehicles are fully invested, and Carroll already has a pipeline of deals circled for Fund III. Through the vehicle, the firm is targeting returns in the high teens, with a significant portion of that return coming through current yield.
Separately, the launch of this fund comes on the heels of Carroll receiving its first sizeable separate account mandate last quarter. The firm formed a $100 million separate account with an undisclosed institution to invest in Class A and B+ multifamily real estate throughout the Southeast and mid-Atlantic regions. One source has said that this mandate is now about 80 percent invested.