Carroll Organization and PGIM Real Estate announced today the formation of a joint venture to acquire 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 Inc. (NYSE: PRU).

All the newly acquired 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 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 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 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,” 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.”

About PGIM Real Estate

PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE: PRU). Redefining the real estate investing landscape since 1970, PGIM Real Estate has professionals in 18 cities in the Americas, Europe and Asia Pacific with deep local knowledge and expertise, and gross assets under management of $69.0 billion ($50.5 billion net) as of Sept. 30, 2017. PGIM Real Estate’s tenured team offers to its global client base a broad range of real estate equity, debt and securities investment strategies that span the risk/return spectrum. For more information, visit pgimrealestate.com.

About Carroll Organization

Carroll Organization is among the leading privately-held real estate companies in the United States. Founded in 2004 and based in Atlanta, Carroll Organization focuses on multifamily properties, including acquisitions, property and asset management services, and fund management. The firm provides investment vehicles for a broad range of investors to access the multifamily real estate asset class and has raised over $1.7 billion of equity through Carroll Organization sponsored funds and joint ventures. Carroll has successfully purchased, developed or sold over $7.0 billion of real estate. Carroll Organization’s regional offices are located in Houston and Orlando. Today, the company manages over 30,000 multifamily units in eight states and has purchased other multifamily owner/operators throughout the U.S. The firm has also developed student housing, single-family residential and retail properties, and has overseen more than $100 million of construction management for both its owned and fee partners. From due diligence to execution, Carroll Organization has the internal capabilities and the external relationships to identify, underwrite, and close transactions. For more information, visit www.CarrollOrganization.com.