Grant Cardone’s Cardone Capital Closes $150 Million Fund Amid Economic Shifts

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

The Surge in Investor Interest

Cardone Capital is witnessing a remarkable surge in interest from individual investors, many of whom are reallocating their funds from the stock market into tangible assets like real estate. The recent volatility in the stock market, coupled with growing economic concerns, has prompted a reevaluation of investment strategies. Multifamily real estate is emerging as an attractive alternative asset class, offering stability and potential for growth.

Recent economic indicators have raised alarms among investors. Unemployment has surged to a nearly three-year high of 4.3%, and job growth reports have fallen short of expectations. In light of these developments, Federal Reserve Chairman Jerome Powell has hinted at potential rate cuts in September, signaling a possible shift in the economic landscape.

Grant Cardone’s Perspective

Grant Cardone, the CEO of Cardone Capital, views these economic shifts as a prime 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 believes 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.

With Fund 24 fully subscribed, Cardone Capital is already preparing to launch its next fund to accommodate the increasing demand from investors eager to capitalize on the multifamily real estate market.

Fund 24’s Prime Acquisition: 10X at Jacaranda

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

Prime Location: The property is situated in one of Florida’s hottest markets, boasting an average household income 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 outlook is promising.
Immediate Cash Flow: Acquired at a significant discount to replacement value, the property has begun generating substantial cash flow from Day One.
Value-Add Potential: The property features below-market rents, providing 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.

Cardone emphasizes the unique market opportunity presented by current conditions. "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," he explained.

The Allure of South Florida Real Estate

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’s “Billionaire Bunker” and Ken Griffin relocating Citadel’s headquarters to Miami, underscore the region’s growing 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 one of the most active players in the multifamily real estate market. The firm’s success with Fund 24 adds to its already impressive track record:

Nearly $350 million distributed to investors since the firm’s 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 providing individual investors with access to institutional-quality real estate deals that were previously out of reach. "We’re giving everyday investors the opportunity to participate in deals that were once reserved for large institutions," Cardone explained.

A Shift in Investment Strategies

Notably, Cardone Capital is seeing 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 are 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 preparing 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 previously acquired the 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," said Cardone. "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. As Cardone Capital continues to expand its portfolio and attract retail investors, the firm is poised to play a significant role in shaping the future of multifamily real estate in South Florida.

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

Media Contact
Ryan Tseko
305-407-0276