With a consistent ability to outperform the market and with a knack for nurturing strategic relationships, M. Patrick Caroll is unlike any other real estate investor. Having acquired more than $900 million worth of multifamily real estate across 17 properties in various cities throughout the United States in 2018— including Atlanta, South Florida, Tampa, Jacksonville, Raleigh-Durham, and Charleston — the Carroll Organization and its CEO, M. Patrick Carroll, are only just getting started. Carroll Organization is already acknowledged across the nation as a leader and innovator in the real estate investment space and they have no plans to slow down in the near future.
The Carroll Organization is widely recognized as the industry standard for multifamily real estate investment due to their consistent ability to make sound and profitable real estate investments as well as provide quality rental opportunities. As a fully-integrated owner and operator of its real estate investments, the firm also exited another 17 properties totaling more than $700 million, producing an average gross IRR of 32% and 1.7x equity multiple, and refinanced five properties returning an average of 20% of the capital invested. This is no small feat in the industry; real estate investment firms take years to build that capital and give their investors those types of returns. Of course, it took time for Carroll to build his business and put himself in a position to be the market mover he is today.
Carroll credits his success to a combination of hard work, patience, perseverance, vision, and an ability to foster relationships. These traits are incredibly important for real estate investors and entrepreneurs as well as investors and entrepreneurs in any industry, especially in the current environment.
Specifically, Carroll has been able to utilize the strong bonds he has with the people in his network in order to grow his business in a way that other people, who do not have the same relationships, would be unable to. To that effect, many of Carroll’s past deals were actually sourced directly from developers and owners; this means that Carroll is able to close big deals before other investors are even aware of the opportunity. Not every investor is able to pull off these “off-market” deals, but due to his trusted network and his strong track record of successful real estate investments, Carroll is one of the few who can.
After getting his start in 2012, M. Patrick Carroll has grown the Carroll Organization’s portfolio to where it is today. With M. Patrick Carroll at the helm, the Carroll Organization is now the owner and operator of 138 properties of multifamily real estate worth more than $5.9 billion, selling $2.6 billion worth of properties, with an impressive average gross IRR of 30% and 1.8x equity multiple. As mentioned, these numbers are not typical of the industry as the Carroll Organization has built a brand on outperforming the market and giving their investors higher returns than their competitors. Carroll has an uncanny ability to both foster and maintain relationships with strategic partners, which provides value to his investors as well as foster and maintain relationships with his investors, which provides capital to his strategic partners. Carroll has successfully built a self-sustaining profitable investment cycle.
Discussing his company’s achievements Carroll credits, “a disciplined investment approach” that is “focused on markets and products that are durable and resilient over time.”
Naturally, based on his past success, Carroll is looking to expand his business outside of the Southeast and Southwest coasts, which is where he has focused his portfolio and built his business over the years. Carroll plans to begin investing in high-growth MSAs in other markets throughout the United States in the near future, including but not limited to Phoenix, Denver, Las Vegas, and the Mid-Atlantic markets.
Carroll is betting big on emerging American cities for a multitude of reasons; the Carroll Organization believes that they have identified quality upcoming markets with a strong potential for highly-profitable multifamily investment. Multifamily performance forecasts are positive in the aforementioned cities, as well as the other cities Carroll is already invested in, precisely because of their quality of life, diverse and business-friendly environments, and population growth. Simply put, those markets are moving; Carroll states, “The dynamic of muted wage growth in the low-to-medium skill jobs and a growing middle-class renter cohort leads us to invest in the space that has the highest demand.”
With M. Patrick Carroll leading the way, the Carroll Organization is well-positioned to keep its role as an industry leader and market mover. With the volatility of the COVID-19 environment for all industries, leaders who have a steady hand and a proven track record is valued at an even higher premium than it usually is. This is exactly why we will be paying close attention to M. Patrick Carroll’s and the Carroll Organization’s next moves.