Carter Funds has sold a portfolio of 16 communities throughout the southeastern U.S. after holding the properties for an average of two years.
The garden-style communities total $274 million in value and were owned by Carter Multifamily, a Carter Funds company that built up the residential portfolio throughout 2019. The firm sold the portfolio for a total of $394 million to an undisclosed buyer.
According to Carter Funds, Carter Multifamily conducted exterior and interior unit renovations on the communities throughout its ownership. The communities also saw decreased vacancies and increased average monthly rents on occupied units under Carter Multifamily’s ownership.
The exterior renovations included enhancements to community amenities, adding sports courts and gaming areas, updating the pool decks and installing new seating areas and outdoor kitchens.
Carter Multifamily also installed gourmet kitchen finishes and new flooring for the units, alongside bathroom remodels and upgrading the appliances and lighting. The renovations, along with operational improvements and solid market performance, led to Carter Funds marketing the assets as beneficial value-add opportunities in high-growth submarkets of the Southeast U.S. region.
SELLING OFF IN THE SUNBELT
Ray Hutchinson, chief investment officer at Carter Funds, said in prepared remarks that the firm is looking at future acquisitions in the southern markets of the U.S. due to the region’s strong multifamily fundamentals.
On the other hand, Carter Funds has recently been selling off some of its multifamily assets in the region. Earlier this month, the firm sold 13 communities located throughout the Sunbelt region of the U.S. as the first tranche that’s part of a major three-phase transaction. In June, Carter Funds also sold two Class B communities in Jacksonville, Fla., for $49 million.