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A n n u a l
R e p o r t
Letter from the CEO
Dear Investors, Employees, Customers, and Friends,
I hope you and your family are safe and healthy. After a year full of challenges that no one could have imagined, I am extremely proud of how CARROLL transitioned and excelled throughout 2020. It was a year in which we relied heavily on the strength of our portfolio management team, and we are exceptionally pleased with how well they performed. Led by David Perez and Scott Gilpatrick, our operations team transitioned to a largely virtual process. Across the organization, our teams worked collectively to make sure residents were well-informed and remained as comfortable as possible during quarantine. I am also proud to report that, despite transactional volume being down across the board, our investment management team, led by Casey barber, remained focused and active.
CARROLL accomplished the following milestones in 2020:
- We achieved a portfolio-wide average monthly rent collection of 95.9 percent from April through December, which outperformed the NHMC industry average of 95.1 percent for the same period during the COVID-19 pandemic.
- We made donations to 11 food banks and sent lunch to healthcare workers on the front lines in markets where our properties operate. In addition, I personally pledged $100K to help families struggling due to the virus, and issued a challenge to other business leaders to make a personal donation to help in their local communities.
- Acquired five properties with a total purchase price of $380M, adding, 2,500 units across Georgia and Florida – bringing our inception-to-date acquisition volume to $7.8B and 57,000 units.
- Completed the successful exit of 10 properties with a total sale price of $480M, representing 3,200 units that produced an average gross return of 23%/1.6x. CARROLL’s inception-to-date disposition volume is now $4.2B and 30,100 units.
- Invested $100M of equity in 2020, raising total equity invested by CARROLL and its partners to more than $2.7B.
- Ended 2020 with a solid, diversified portfolio of nearly 30,000 units valued at greater than $5.2B.
My sincere thanks go out to everyone who helped us achieve this successful year. During the pandemic, the multifamily asset class has shown what a resilient and attractive commercial sector it is, and we are extremely excited for what’s to come in 2021.
Sincerely,
M. Patrick Carroll, Founder & Chief Executive Officer
Leadership Team
Our Platform
Investment Management
The Investment Management team at CARROLL assesses market conditions, pinpoints opportunities, and executes thoughtful strategies to realize results for our investors.
Property Management
CARROLL Management Group is the nationally recognized operations arm of the business responsible for building world-class teams to effectively manage the on-site responsibilities of our portfolio.
Construction Management
The Construction Management team manages value-add projects from ideation to design to construction.
ARIUM Living
ARIUM Living is a consumer brand built on a promise to continuously find ways to make apartment living better for our residents.
Nocturnal
NocturnalXD is an affiliate marketing service provided to help drive more efficient and effective marketing for each asset.
ITSSG
ITSSG is an affiliate IT service offered to each of our properties that enhances processes both on- and offsite to streamline communication and practices
People Team
CARROLL’s People team is focused on creating one of the best companies to work for by hiring and retaining the top talent in each market and cultivating that talent through a culture of learning.
Accounting
CARROLL’s Accounting team focuses on providing consistent and reliable financial analysis and reporting.
Our Footprint
Looking Ahead
CARROLL always pushes the leading edge of trends in multifamily. While other firms focused on investing in urban areas during the past decade, CARROLL embraced suburban investments to the tune of $7.6 billion in multifamily communities, recognizing the inherent value in suburban lifestyle and the macro tailwinds to come. This same theory and execution process later repeated in the mid-2010s, with $4.6 billion in multifamily investments in Florida and Texas, as others focused on Gateway Markets. In 2017 and 2018, with construction costs exploding and new development concentrated on in-fill spots, we invested $3.6 billion into workforce housing, which precipitated strong inflows in the space and continues to provide strong cash flow and value today.
As we enter 2021, which will be a defining moment for multifamily, CARROLL continues to shift its platform to adjust to what we believe is a permanent new normal, dominated by acceleration in technology and work-from-home trends, with lifestyle and quality of life being the biggest drivers of demand. Commodity, down-the-fairway value-add acquisitions will be harder to come by given industry maturation, record dry powder from institutions, and private buyers increasing multifamily investment allocations. A more focused and disciplined team is needed to respond to this moment.
