Carroll Organization, PGIM Real Estate Acquire 4-Property Portfolio in FL

Savannah Lakes

Carroll Organization and PGIM Real Estate have formed a joint venture to acquire a four-property portfolio in South Florida. Carroll Organization is acting on behalf of its latest investment vehicle, Carroll Multifamily Real Estate Fund V, while PGIM Real Estate is acting on behalf of institutional investors.

The seller was Greystar Real Estate Partners, which acquired the properties in 2013 as part of a much larger portfolio of 27 properties. That larger deal totaled $1.5 billion, and Graystar then spent additional funds to renovate the South Florida properties it has now sold.

The portfolio includes Bella Vista at Boca Del Mar, a 292-unit community in Boca Raton, Fla.; Centro at Davie, a 466-unit community in Davie, Fla.; Savannah Lakes, a 466-unit resort-style community in Boynton Beach, Fla.; and Stonybrook Apartments, a 264-unit gated community in Boynton Beach, Fla.

The newly acquired South Florida properties will be rebranded under the ARIUM name and managed by Carroll Management Group. The deal is the second joint venture between the buyers. Late in 2017, they acquired a portfolio of 28 workforce housing properties in Florida, North Carolina, Tennessee and Texas.

South Florida Apartment Fundamentals Strong

“Improving fundamentals in South Florida are supporting net operating income growth and attractive cap rates on a relative basis to other U.S. markets,” said Alfonso Munk, Americas CIO and head of Latin America for PGIM Real Estate. “We expect that stronger employment growth in the local economies will continue to support apartment demand over the next several years,” Munk added.

Carroll Organization is a privately held real estate company that focuses on multifamily investment, management and development, while PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial Inc.