Atlanta-based apartment company CARROLL was purchased by national asset manager RMR Group for $80 million in cash. 

As part of the transaction, CARROLL founder and CEO Patrick Carroll will leave the company, while CARROLL’s remaining 700 executives and employees will join the combined company, according to an RMR investor presentation. Patrick Carroll has been beset by widely reported scandals in recent months, including allegations of domestic violence. He will retain his existing general partner co-investments and the promote fees derived from those 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,” Carroll said in a press release. “CARROLL’s long track record of success and expertise in the multifamily sector will perfectly complement RMR’s diverse real estate investment management platform.” 

The $80 million transaction covers 100% of the equity interests of MPC Partnership Holdings LLC, which does business as CARROLL. The company was founded in 2004 and provides asset and property management services to 81 multifamily properties with more than 28,000 units, primarily in the Sunbelt, through its ARIUM Living brand. 

The deal allows RMR, which operates primarily in the hotel, retail, industrial, office and health sectors, to enter the residential market in a single move, given CARROLL’s well established apartment platform, the company said. It also brings about $7 billion in assets under management and 20 institutional partner relationships. 

“This transaction will further diversify and expand the reach of RMR, augmenting RMR’s already considerable scale with differentiated operational expertise in a favored commercial real estate sector,” RMR President and CEO Adam Portnoy said. “Importantly, the CARROLL platform is uniquely positioned to continue benefiting from favorable demographic tailwinds in high-growth Sunbelt markets.” 

The transaction is expected to close this fall.