Reading the Market: Carroll Organization Sells Two Houston Apartments

Carroll Organization, a privately held multifamily specialist, has completed the sale of Arium Westheimer and Arium Westheimer Villas, both located in Houston, for an unspecified price.

Houston—Carroll Organization, a privately held multifamily specialist, has completed the sale of Arium Westheimer and Arium Westheimer Villas, both located in Houston, for an unspecified price. The multifamily properties were originally acquired by Carroll in 2013 with plans for a light value-add renovation plan and to streamline management operations, which were undertaken.

Westheimer and Westheimer Villas were both part of Carroll Co-Invest Fund II L.P. The properties were developed in 2009 and 2006, respectively. They are adjacent to each other and located within a block of the southern boundary of Houston’s Energy Corridor, which contains more than 18 million square feet of office space, 1.4 million square feet of retail, and 1.4 million square feet of industrial.

“After closely monitoring the Houston market and some of our early investments there, we thought it would be the perfect time to sell the Westheimer assets and lock in solid gains for our investors,” Carroll Organization CEO Pat Carroll tells MHN. “We’re long-term believers in the Houston market and we will continue to own properties and develop our business there.”

Carroll adds that the transactions produced an IRR greater than 50 percent. “We bought the properties at the right price, finished our business plan earlier than projected, and exited when the market opportunity presented itself,” he notes.

Recently, the company has been an aggressive multifamily buyer and seller. In 2014, it bought 15 multifamily properties valued at over $615 million and has exited properties valued over $220 million. Carroll Organization sources many of its deals off-market, directly from developers and owners.