PGIM, Carroll Organization JV acquires 28-property multifamily portfolio

PGIM Real Estate and Carroll Organization have formed a joint venture to acquire a multifamily portfolio including 28 properties across Florida, North Carolina, Tennessee and Texas.

The 28-property portfolio is currently more than 95 percent occupied and encompasses 8,578 units across four states and six high-growth metropolitan markets. The joint venture plans to use the properties’ strong in-place cash flow to execute light value-add improvements.

“The six major metros where these multifamily properties reside have seen average employment growth outperform the U.S. average for seven straight years — in some cases by more than double,” said Alfonso Munk, Americas CIO for PGIM Real Estate. “Due to the pro-business environments, attractive cost of living, and moderate climates, we expect the Sunbelt markets will continue to outperform the U.S. averages in both population and job growth.”

“This investment is based on our belief that quality workforce housing is currently an underserved segment of the multifamily market, which has created a supply/demand imbalance in our country when homeownership or new-supply rents in desirable locations may not be attainable. Most of the assets in this portfolio are within close proximity to employment centers in major MSAs and offer rent levels that do not compete with new supply, which generally translate to higher rent,” said M. Patrick Carroll, CEO of Carroll Organization. “This portfolio acquisition is a unique opportunity to provide instant scale and diversification for our fifth fund in markets where we already have a significant presence, and in a segment of the market in which we believe there will be significant growth over the coming years that will fuel robust demand.”

The seller was affiliates of Lone Star Funds. Carroll Organization, acting on behalf of its latest investment vehicle, Carroll Multifamily Real Estate Fund V, is a privately held real estate company focused on multifamily investment, management and development. PGIM Real Estate, acting on behalf of institutional investors, is the real estate investment business of PGIM, the global investment management business of Prudential Financial Inc.

All of the newly acquired properties will be managed by Carroll Management Group.