Grant Cardone’s Cardone Capital Closes $150 Million Fund, Capitalizing on South Florida’s Real Estate Boom

Aventura, FL, Aug. 23, 2024 (GLOBE NEWSWIRE) – In a significant move that underscores the growing interest in multifamily real estate, Grant Cardone, the renowned real estate fund manager, has announced the successful closure of his latest fund, Fund 24, at a remarkable $150 million. This fund, fully subscribed by retail investors, has acquired a Class A multifamily asset in South Florida, strategically positioned to leverage the rapid economic growth of the submarket.

The Surge in Investor Interest

Cardone Capital is witnessing an unprecedented surge in interest from individual investors. As stock market volatility and economic uncertainties loom, many are reallocating their funds from traditional equities into tangible assets like multifamily real estate. The recent economic indicators, including a rise in unemployment to a nearly three-year high of 4.3% and disappointing job growth reports, have prompted investors to rethink their strategies. Federal Reserve Chairman Jerome Powell’s hints at potential rate cuts in September further signal a shift in the economic landscape, creating a ripe environment for real estate investment.

Grant Cardone, the CEO of Cardone Capital, views these economic shifts as a golden opportunity for real estate investors. "I expect rate cuts to cause a surge of activity in the multifamily market as institutional buyers come back to the table and drive up prices," Cardone stated. He emphasizes that the current market conditions present an ideal opportunity for cash buyers, like his investors, to acquire properties at discounted rates before values inevitably rise.

Fund 24: A Strategic Acquisition

The centerpiece of Fund 24 is the recently acquired 10X at Jacaranda, a sprawling 468-unit property located on 31 acres in Plantation, Florida. This acquisition exemplifies Cardone’s investment strategy, which focuses on several key factors:

• Prime Location: The property is situated in one of Florida’s hottest markets, boasting an average household income that is 45% above the national average.
• Strong Demographics: With 76% of residents employed in white-collar professions and over 6,700 new jobs projected for the area in 2024, the demographic profile is highly favorable.
• Immediate Cash Flow: Acquired at a significant discount to replacement value, the property has generated substantial cash flow from Day One.
• Value-Add Potential: The property features below-market rents, presenting an opportunity to enhance cash flow and property value within the first year of ownership.
• Strategic Financing Opportunity: Future financing options could allow for a substantial return of investors’ capital while maintaining their ownership interest in the deal.

"We’re taking advantage of a unique market opportunity," Cardone remarked. "While many institutional investors remain sidelined due to high interest rates, we’re able to move quickly with all-cash offers, securing prime properties at 40-50% below replacement cost."

South Florida: A Hotbed for Investment

Investors are increasingly bullish on the South Florida market, which has been attracting significant wealth and high-paying jobs. High-profile relocations, such as Amazon founder Jeff Bezos moving to Miami and Ken Griffin relocating Citadel’s headquarters, further bolster the region’s appeal. "Florida’s economy is ranked as the strongest in the country and is on track to be a top 10 global economy by 2030," Cardone noted. With 5,700 people moving into the state each week, the demand for high-quality apartment units is surging.

Cardone Capital’s Impressive Track Record

Since December 2023, Cardone Capital has invested nearly half a billion dollars in all-cash transactions, solidifying its position as a leading player in the multifamily real estate market. The firm’s success with Fund 24 adds to its impressive track record:

• Nearly $350 million distributed to investors since inception, including $7.87 million in August 2024.
• A portfolio approaching 14,000 apartment units across 41 multifamily properties.
• Over 500,000 square feet of commercial office space.

Cardone Capital is democratizing access to institutional-quality real estate deals that were previously out of reach for individual investors. "We’re giving everyday investors the opportunity to participate in deals that were once reserved for large institutions," Cardone explained.

Notably, there is a record number of investors converting their 401(k)s and IRAs into real estate investments. "People are realizing that traditional retirement accounts are too vulnerable to the market shifts we’re seeing," Cardone noted. "By investing in real estate through Cardone Capital, they’re securing a more stable future with consistent cash flow and the potential for significant capital appreciation."

Looking Ahead: Fund 25 Launch

For those who missed out on Fund 24, Cardone Capital is gearing up to launch its next offering, Fund 25. This fund is set to close on a Class A, 331-unit multifamily asset in downtown Fort Lauderdale’s most desirable neighborhood. The firm had previously acquired a neighboring property earlier this year and received commitments from investors for the total amount within a week of announcing the deal.

"The demand is unprecedented," Cardone stated. "Investors recognize the unique opportunity we’re offering in one of the hottest real estate markets in the world."

Conclusion

Grant Cardone’s visionary approach to real estate investment is resonating with investors seeking stable cash flow and long-term capital appreciation, especially as traditional investments become increasingly volatile. With the successful closure of Fund 24 and the upcoming launch of Fund 25, Cardone Capital continues to pave the way for individual investors to access lucrative real estate opportunities in a rapidly evolving market.

For more information about Cardone Capital and its newest opportunities, visit Cardone Capital’s website.

Media Contact
Ryan Tseko
305-407-0276