The multifamily space continues to be as competitive as ever, but one firm just made a double-whammy debut by acquiring a seasoned platform with billions of dollars in assets under management (AUM) — and one with a Sun Belt foothold, to boot. 

The RMR Group will acquire 100 percent of the equity interests in MPC Holdings — more commonly known as Carroll — in an all-cash transaction for $80 million, Commercial Observer can first report. 

The deal marks Newton, Mass.-based RMR’s first big step into the multifamily sector. With a diverse commercial real estate portfolio that already includes industrial, office, retail and hotel properties, the acquisition of Carroll’s multifamily platform was “the most important piece of the puzzle that we had been missing,” Adam Portnoy, president and CEO of RMR, told CO. 

The transaction adds $7 billion of AUM to RMR’s existing portfolio, growing the alternative asset management firm’s total AUM to $44 billion, and adding more than 20 institutional partnerships. 

Atlanta-based Carroll has a significant footprint of its own. Its portfolio comprises 28,000 units across 81 multifamily properties, primarily in Sun Belt markets. In addition to snapping up those assets, RMR will also be able to leverage the platform’s significant technology infrastructure and digital marketing capabilities across its broader platform. 

Carroll’s track record is nothing to be sneezed at, either, having executed more than $12 billion in acquisitions since its inception in 2004, with average gross realized returns of 30 percent and $3 billion of dry powder available in its general partner fund series for future investments. 

“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,”  Patrick Carroll, founder and CEO of Carroll, said in a statement. “Carroll’s long track record of success and expertise in the multifamily sector will perfectly complement RMR’s diverse real estate investment management platform. I believe RMR is the right company to lead the Carroll’s team and business  through the next phase of growth, while continuing to focus on the core tenets of our business — consistently delivering best-in-class management and generating  meaningful value for our partners.” 

While Patrick Carroll will depart the company once the transaction closes, RMR will retain Carroll’s 700 employees. In addition to holding extensive experience in capital raising, acquisitions and asset management, the team also has significant property management expertise via Carroll’s ARIUM Living consumer brand. 

The origin of the acquisition spans several years, Portnoy said. “We had been very interested in expanding and growing RMR for some time, and the obvious hole in our platform — the missing piece — was that we didn’t have a multifamily division while we had pretty much every other type of commercial real estate.” 

Adam Portnoy. Photo: The RMR Group

Portnoy said RMR found that missing puzzle piece in Carroll, with the firm ticking multiple boxes between its impressive track record in the multifamily sector, its significant Sun Belt foothold and the sheer size of AUM that RMR would be adding to its existing portfolio through an acquisition. 

After all, where better to establish your multifamily presence than the Sun Belt — the mecca for multifamily investment. 

Sun Belt states have experienced incredibly strong tailwinds over the past several years, and Portnoy doesn’t see any signs of that interest being curtailed. “I think multifamily dynamics are so strong,” Portnoy said. “We have a housing shortage overall in the United States, but in the Sun Belt it’s even more acute because of population migration, which was only accelerated by COVID as so many people moved to that part of the country.”  

The transaction is expected to close this  fall, and, while it marks RMR’s first significant step into the multifamily sector,  it may not be the last. 

“This is the beginning,” Portnoy said. “We  hope to grow the Carroll platform, but it will be our anchor and beginning [in the multifamily space]. After this transaction, the company’s financial position continues to be very strong. We have no debt, and even after this transaction, we’re still going to be sitting on over $200 million in cash and generating excess cash every quarter — so we’re in a very strong position to continue to look at future acquisitions.”

Cathy Cunningham can be reached at [email protected] 

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ATLANTA — A new reactor at a nuclear power plant in Georgia has entered commercial operation, becoming the first new American reactor built from scratch in decades.

Georgia Power Co. announced Monday that Unit 3 at Plant Vogtle, southeast of Augusta, has completed testing and is now sending power to the grid reliably.

At its full output of 1,100 megawatts of electricity, Unit 3 can power 500,000 homes and businesses. Utilities in Georgia, Florida and Alabama are receiving the electricity.

Nuclear power now makes up about 25% of the generation of Georgia Power, the largest unit of Atlanta-based Southern Co.

A fourth reactor is also nearing completion at the site, where two earlier reactors have been generating electricity for decades. The Nuclear Regulatory Commission on Friday said radioactive fuel could be loaded into Unit 4, a step expected to take place before the end of September. Unit 4 is scheduled to enter commercial operation by March.

The third and fourth reactors were originally supposed to cost $14 billion, but are now on track to cost their owners $31 billion. That doesn’t include $3.7 billion that original contractor Westinghouse paid to the owners to walk away from the project. That brings total spending to almost $35 billion.

The third reactor was supposed to start generating power in 2016 when construction began in 2009.

Vogtle is important because government officials and some utilities are again looking to nuclear power to alleviate climate change by generating electricity without burning natural gas, coal and oil.

“This project shows just how new nuclear can and will play a critical role in achieving a clean energy future for the United States,” Southern Co. CEO Chris Womack said in a statement. “Bringing this unit safely into service is a credit to the hard work and dedication of our teams at Southern Company and the thousands of additional workers who have helped build that future at this site.”

In Georgia, almost every electric customer will pay for Vogtle. Georgia Power currently owns 45.7% of the reactors. Smaller shares are owned by Oglethorpe Power Corp., which provides electricity to member-owned cooperatives, the Municipal Electric Authority of Georgia and the city of Dalton. Oglethorpe and MEAG plan to sell power to cooperatives and municipal utilities across Georgia, as well in Jacksonville, Florida, and parts of Alabama and the Florida Panhandle.

Georgia Power’s 2.7 million customers are already paying part of the financing cost and elected public service commissioners have approved a monthly rate increase of $3.78 a month for residential customers as soon as the third unit begins generating power. That could hit bills in August, two months after residential customers saw a $16-a-month increase to pay for higher fuel costs.

Commissioners will decide later who pays for the remainder of the costs of Vogtle, including the fourth reactor.

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North Carolina’s first electric vehicle plant broke ground amid the push to onshore manufacturing facilities in the United States.

Clayco, a Chicago-based construction firm, kicked off phase one of a $4 billion EV manufacturing campus last week near Raleigh, North Carolina, according to a company press release.

“Clayco is breaking ground on the nation’s first VinFast electric vehicle manufacturing campus,” said Anthony Johnson, president of Clayco’s industrial business unit. “This is a transformative project for the Raleigh-Durham economy and a major win for American manufacturing.”

Last summer the state awarded a $1.2 billion incentive package to VinFast, a Vietnamese automotive company, to build its first facility on American soil. The project also received critical financial support from the City of Sanford, Chatham County and the Golden Leaf Foundation, a North Carolina grant-making organization, according to the EV company.

The 3-million-square-foot plant, which has a phase one total investment of up to $2 billion, spans an area of about 1,800 acres. The project consists of five main production areas, including a body shop, general assembly, press shop, paint shop and an energy center, according to VinFast.

Phase one will focus on the construction of the manufacturing facilities for VinFast’s VF 7, VF 8 and VF 9 electric cars, as well as additional support buildings, such as an office, training facility, a central energy plant, fire prevention, pump house facilities and a finished vehicle area. The supplier base for components and materials will be primarily concentrated in the U.S., Vietnam and a few other countries, according to VinFast.

While the fast-growing Vietnamese auto company’s imports don’t currently qualify for a $7,500 federal EV rebate, those produced in its North Carolina factory might, according to CNBC. That would help the upstart take on U.S.-based EV stalwart Tesla.

Future expansion and updates for the factory will be identified in the next phase, according to the electric carmaker. Clayco expects the factory to start production in 2025, with a production capacity of 150,000 vehicles per year.

The Vietnamese auto company has additional facilities in Canada, Germany, France and the Netherlands. The company announced last year a total investment of $4 billion to build out its EV battery plant in North Carolina, according to North Carolina Gov. Roy Cooper.

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If we gave grades to general contractors, we would give Southern Constructors, Inc. an A+ in all categories. They are one of the most capable, knowledgeable, and savvy builders we have ever worked with. SCI ensures the owner gets what they need, managing budgets and schedules while maintaining quality and anticipating project constraints. And they’re fun and pleasant to work with.

Frank Sparkman – Sparkman & Associates Architects, Inc.

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