ATLANTA, GA – Carroll Organization and PGIM Real Estate announced the formation of a joint venture to buy a multifamily portfolio including twenty-eight properties across Florida, North Carolina, Tennessee and Texas. The seller was affiliates of Lone Star Funds.

Carroll Organization, acting on behalf of its latest investment vehicle, Carroll Multifamily Real Estate Fund V, LP, is one of the country’s leading privately-held real estate companies 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.

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

The twenty-eight-property portfolio is currently over 95% occupied and encompasses 8,578 units across 4 states and 6 high-growth metropolitan markets (MSAs). The joint venture plans to use the properties’ strong in-place cash flow to do 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 chief investment officer 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 made 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,” said M. Patrick Carroll, Chief Executive Officer 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.”

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SANTA CLARITA, CA – JPI, a national developer of first-class multifamily homes, will be building luxury apartments in the heart of Vista Canyon, a new transit-oriented community by JSB Development under construction in Santa Clarita, California. The 13.08-acre, 480-home resort-style development is the first multifamily complex in Vista Canyon’s centralized town square and will feature floor plans in trendsetting studio, one, two and three-bedroom designs.

Vista Canyon is a 185-acre mixed-use, walkable community by master developer JSB Development. Santa Clarita is Los Angeles County’s third largest city and one of the fastest growing markets in the state.

Transit-focused, pedestrian and cyclist friendly, Vista Canyon’s innovative design integrates urban vitality and connectivity with sustainability and small-town charm. The community “reimagines the suburban experience” with a bustling, tree-lined main street known as Lincoln Place, dynamic work environments, ultra-accessible transit options including a transit center with Metrolink station, inviting gathering places, generous recreational amenities and abundant open space – all connected by 10 miles of pedestrian, bike and equestrian trails. The community will ultimately offer 1,100 homes – luxury apartments, townhomes and for-sale residences.

Residents of the apartment homes constructed by JPI will delight in the energy, prestige and convenience of a city center address located just steps from shops, coffeehouses, cafes, corporate offices, entertainment and transit.

JPI’s Western Region, based in San Diego, is developing multifamily communities in Arizona and California, including Jefferson Pacific Beach – a 172-unit luxury, mixed-use development adjacent to Mission Bay in San Diego, and Jefferson Stadium Park – a 1,079-unit luxury apartment community, which includes a 1.1-acre park, and 14,600 square feet of retail space, in Anaheim’s Platinum Triangle.

“JPI brings a respected reputation for outstanding luxury apartment communities that deliver exceptional living experiences to residents,” said James S. Backer, President of JSB Development. “We believe they are a fantastic partner for us in Vista Canyon’s first residential community and will set a very high standard for continued excellence in our future home neighborhoods.”

“JPI has fantastic confidence in the City of Santa Clarita, as demonstrated by the fact that this will be our second community development in the City,” said Todd Bowden, Senior Vice President and Managing Development Partner/JPI Western Region. “Even more, JSB’s vision in developing the Vista Canyon master plot fits perfectly with JPI’s breadth of view for Jefferson Vista Canyon. We value the forward-thinking approach to building communities in and around major transit centers, in the case of Vista Canyon: the Metrolink. We are committed to seeking out partnerships that share our values, and endure the test of time.”

Construction is expected to start next summer. First residents are expected to go in by mid-2019.

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GREENVILLE, NC – FM Capital, in conjunction with Gottlieb Family Partners, and AMAC Holdings, through a joint venture, announced that they have bought Captain’s Quarters, the largest student housing property in Greenville, NC, near East Carolina University (ECU) and Pitt Community College (PITT) campuses.

“The Captain’s Quarters sales process was extremely competitive as the asset offered unprecedented upside potential given ECU’s strong enrollment growth. FM Capital and AMAC’s track record closing complicated transactions allowed for them to rise to the top of the aggressive bidding process,” said Jaclyn Fitts, Director of National Student Housing, CBRE. With this acquisition, FM Capital’s student housing portfolio has reached a new milestone of over 5,000 beds. 

Captain’s Quarters encompasses 600 units and 1,692 beds, spans 38 buildings and has extensive amenities, including: three resort-style pools with expansive outdoor lounging and dining areas, two clubhouses, full-court basketball gymnasium, double sand volleyball courts, dog park, fitness center, theater room, computer lab, and multiple private and group study rooms. 

FM Capital and AMAC plot to renovate and reposition the property, in order to restore it as one of the most desirable student housing communities in the Greenville market. Upon takeover, FM Capital and AMAC announced a rebranding of the property, changing the name from Captain’s Quarters to Paramount 3800. The new name reflects ownership’s strategy to offer a more modern brand that represents a new resident-life experience. Paramount 3800 will also undergo a multi-million dollar renovation. This includes exterior and interior improvements such as the upgrading and modernization of the common areas and amenities, installing high-speed fiber-optic internet, and unit upgrades.

The Preiss Company, a national leader in owning and operating student housing, has been selected to manage the property. According to Joe Fishman, VP of Acquisitions for FM Capital, “The Preiss Company’s industry expertise and youthful approach mirrors our value-add strategy for this asset.” Prior to buy, the property was divided into two adjacent lots (Phases). Phase I (876-beds) was occupied at 78% for the 2017-18 academic year, while Phase II (816-beds) was left vacant. Post-acquisition, ownership plans to merge the two phases and operate them as a single entity.

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