Patrick Carroll, the real estate developer at the center of multiple scandals, 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 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,” Caroll said in a statement.
Carroll has found himself in the news for the wrong reasons in recent months. Earlier this year, Carroll allegedly spat on a restaurant manager in Miami’s Wynwood, an incident first reported by The Real Deal. The restaurant manager has since sued Carroll for defamation. Other incidents have reportedly caused Carroll to be banned from Major Food Group and Simon Kim restaurants.
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In 2021, a Tampa-based divorce lawyer who represented Carroll’s ex-wife in their acrimonious split also sued Carroll for allegedly making false statements about the attorney on social media.
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.
— Holden Walter-Warner