Partnership Sells ARIUM North Point Apartments in Atlanta; Value-Add Investment Strategy Achieved by Carroll Organization and Origin Investments
Atlanta, GA— Capitalizing on strong demand for multifamily assets across the country, a partnership that includes Atlanta-based Carroll Organization and Chicago-based Origin Investments has completed the sale of the 236-unit ARIUM North Point apartment complex in Atlanta, Georgia. The partnership originally purchased the property in December of 2012.
"We were able to purchase an ideal, value-add asset in an excellent location which perfectly matched our investment strategy," said M. Patrick Carroll, Founder and Chief Executive Officer of Carroll Organization, a privately-held multifamily investment, management and development firm. "The Investment team did an exceptional job executing our business plan and implementing value-add renovations. After almost a four year hold, we saw an opportunity to sell, achieving more than a 3x deal level equity multiple."
"The real opportunity for the partnership was to acquire an asset below replacement cost and then ultimately improve a rent structure that initially was well below market," said Marc Turner, Director of Asset Management for Origin Investments, a Chicago-based private equity commercial real estate firm. "It was a textbook example of what Carroll and Origin look to do—improve net operating income by reducing and controlling expenses, upgrading the amenities and interiors, and maintaining strong occupancy—in individual and joint venture investments."
ARIUM North Point is a garden-style community with high-end amenities located just minutes from GA-400. With only 8.1 units per acre, the low density "preserve-like" wooded setting offers its tenants a serene atmosphere. Leveraging the wooded setting, many of the units include a glass-enclosed sunroom for the tenants to enjoy the surrounding beauty. The property features a clubhouse, business and fitness center, along with a terraced pool area. The community is located in an excellent school district, including nationally acclaimed public schools such as Milton High School, while also being in close proximity to great shopping, dining and entertainment.
To date, Carroll has successfully exited thirteen assets valued over $470 million, including this transaction. The investments have produced an average IRR of 32%. Carroll has purchased twenty-four properties totaling over $1 billion since the beginning of 2015 and is continuing to actively purchase high-quality multifamily communities in the Southeast and Texas. Carroll sourced many of its deals "off-market" directly from developers and owners, and is recognized in the industry as an owner that executes at each state of the investment life cycle.
