RMR Group to Buy CARROLL for $80M

The deal marks the buyer's first foray into multifamily.

935M by ARIUM, a property owned and managed by CARROLL. Image courtesy of Yardi Matrix

The RMR Group is acquiring Atlanta-based MPC Holdings, a multifamily asset and property management firm doing business as CARROLL, for $80 million.

The buyer will assume full ownership of CARROLL’s equity interests, including its investment and management portfolio. The deal adds $7.4 billion of assets under management to RMR’s portfolio. The properties total more than 28,000 units across 81 communities in eight states. As a result of the sale, which is expected to be approved in autumn of this year, RMR’s private capital assets under management are expected to be valued at $44 billion.

The deal was an all-cash transaction, with RMR assuming an incremental earnout of up to $20 million in potential future investments. Alongside the ownership of CARROLL’s management and investment portfolio, RMR will also take responsibility for the firm’s joint ventures and funds with instructional investors.

CenterCap Group, LLC acted as RMR’s financial advisor, with Skadden, Arps, Slate, Meagher & Flom providing legal counsel. UBS Investment Bank and King & Spalding, respectively, acted in the same roles for CARROLL.

Goals and integrations

CARROLL was founded in 2004 and, over the course of its existence, acquired and developed $12.1 billion worth of real estate assets, while managing construction for a further $500 million on behalf of its institutional partners.

After the sale closes, CARROLL’s 700 employees will move to RMR and the buyer will integrate ARIUM Living, its property management subsidiary, into its own property and asset management operations. Additionally, RMR will integrate CARROLL’s acquisitions, construction, technology and marketing services with its investments.

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RMR’s acquisition of CARROLL marks the buyer’s first foray into multifamily investing outside of senior housing. After the purchase, the buyer’s portfolio of real estate assets will consist of 16 percent multifamily assets.

According to Adam Portnoy, president & CEO of RMR, the purchase was motivated in part by the geographic locations of CARROLL’s properties, with the goal of expanding its own investments in the region. Nearly all of the firm’s properties are located in the Sun Belt, the region experiencing the fastest in-migration in the U.S., with fundamentals motivated by lower cost of living and business-friendly policies.

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