Carroll Organization raising capital for third fund

The Carroll Organization has raised $10 million in capital for its third investment fund, Carroll Multifamily Real Estate Fund III, confirms Patrick Carroll, the firm’s chief executive. The firm is targeting an initial close for the fund by the end of the month.

The commingled fund, which will invest in multifamily properties in the U.S. Southeast and Texas, has a fundraising goal of $50 million. It will target returns in excess of 15 percent from class A and class B properties located in secondary markets. The firm “is interested in investing in secondary markets because these markets offer high-quality assets,” Carroll says, “and with minimal new supply, investments have more room for growth. Also, compared to the primary markets, the risk tolerance is greater but the return can be much higher.”

The fund has received commitments from both high-net-worth individuals and instituti