M. Patrick Carroll has found a buyer for his multifamily investment firm.
RMR Group, headed by Adam Portnoy, is purchasing the Carroll Organization for $80 million in an all-cash transaction, the Commercial Observer reported. The deal is for all of Carroll’s equity in the company, and he will depart the firm after the transaction.
RMR is buying the firm’s operational assets, including Carroll’s property management platform. Carroll oversees and manages a sprawling portfolio, estimated to be worth $7 billion, that includes more than 28,000 units across 81 properties, primarily in the Sun Belt. Those properties are separately owned by funds that Patrick Carroll has an equity stake in, and are not part of RMR’s purchase.
“I’m incredibly proud of the business my team and I have built over the past nearly 20 years with the support of our investors and partners, and I’m thrilled to see Carroll take the next step under RMR’s ownership,” Carroll said in a statement.
RMR is in the process of executing a merger between two real estate investment trusts, Office Properties Income Trust and Diversified Healthcare Trust, which are both managed by Portnoy’s firm. Announced in April, that transaction has yet to close.
— Excerpted from The Real Deal