Grant Cardone Closes Largest All-Cash Multifamily Deal in South Florida This Year
In a remarkable display of financial prowess and strategic investment, Grant Cardone, the renowned real estate mogul and operator of Cardone Capital, has successfully closed an all-cash deal for the 10X Flagler Village, a premier multifamily property in downtown Fort Lauderdale, Florida. This acquisition, which encompasses 382 Class A units, marks a significant milestone as the largest all-cash multifamily deal in South Florida for the year.
A Bold Move in a Cautious Market
The real estate landscape has been tumultuous, with many syndicators facing challenges and returning keys to banks. Yet, Cardone Capital has emerged as a beacon of activity, closing over a quarter of a billion dollars in new acquisitions in just six months. While institutional investors remain hesitant, Cardone has successfully raised over $300 million for his latest funds, launching Cardone Equity Fund 24 in the process. This demonstrates not only the strength of his business model but also the unwavering confidence of his investor base.
Robert Given, a broker with CBRE, commended Cardone’s approach, stating, “Cardone is one of the most active buyers in the country today. His unique model benefits regular people who could never access these kinds of deals.” This sentiment underscores Cardone’s commitment to democratizing real estate investment, allowing everyday investors to participate in high-value opportunities.
The 10X Flagler Village Acquisition
The 10X Flagler Village property, purchased from an institutional owner, features 382 units with average rents of $2,700. Its prime location on the prestigious A1A, coupled with excellent retail frontage, positions it as a highly desirable asset. Cardone plans to rebrand the property as “10X Flagler Village,” aligning it with his signature investment philosophy and brand identity.
When discussing the rationale behind the all-cash purchase, Cardone explained, “We showed our investors this acquisition, and within a week we had commitments for the entire amount. We could have easily gotten a loan, but why pay lenders 7.5% when we can share that with our investors and finance in the future when rates come back down?” This strategic decision not only enhances returns for investors but also positions Cardone Capital favorably in a high-interest rate environment.
Leveraging Retail Investor Power
Cardone Capital’s ability to execute this all-cash deal highlights the advantages of leveraging a robust retail investor base. By tapping into the collective power of individual investors, the company has been able to secure lucrative deals that might otherwise be inaccessible. Over the past year, Cardone has distributed more than $65 million to investors, translating to an impressive annual cash yield exceeding 6%.
This innovative approach not only differentiates Cardone Capital from traditional institutional investors but also underscores the exclusivity of the investment opportunities it offers. As Cardone continues to disrupt the real estate industry, his vision and leadership are proving to be instrumental in navigating the current market challenges.
Future Growth and Investor Promises
Looking ahead, Cardone remains optimistic about the real estate market. He has indicated plans to close three more similarly sized deals before the end of June, totaling half a billion dollars. This aggressive growth strategy reflects Cardone Capital’s commitment to delivering value and potential returns to its investors, reinforcing the belief that the company is well-positioned to capitalize on emerging opportunities.
Since its inception in 2016, Cardone Capital has raised over $1.3 billion from retail investors across 24 funds, amassing a diverse real estate portfolio that includes over 13,000 apartment units and more than 500,000 square feet of commercial office space. Notable properties include the 10X Centre in Aventura, Florida, which serves as the headquarters for Cardone Capital.
Conclusion
Grant Cardone’s recent acquisition of the 10X Flagler Village is not just a testament to his acumen as a real estate investor but also a reflection of his innovative approach to democratizing access to high-quality real estate investments. As Cardone Capital continues to expand its portfolio and disrupt the traditional real estate investment landscape, it is clear that Cardone’s visionary leadership is paving the way for a new era of investment opportunities for everyday investors. With a track record of success and a commitment to delivering value, Cardone Capital is poised to thrive in the evolving market landscape.