Real estate fund operator Grant Cardone strikes again, closing an all-cash deal on 10X Flagler Village, a 382-unit, Class A property in downtown Fort Lauderdale, Florida. Through his company Cardone Capital, Cardone has closed all cash on a quarter of a billion dollars of new acquisitions over the past six months. While institutional investors remain cautious and on the sidelines, Cardone Capital has successfully raised over $300 million for its most recent funds and has just launched Cardone Equity Fund 24, demonstrating the strength of its business model and the unwavering support of its investors.
This landmark acquisition comes at a time when many syndicators are struggling and keys are being returned to banks. However, Cardone’s innovative approach has positioned his company as one of the most active buyers in the country today. Robert Given, a broker with CBRE, praised Cardone’s model, 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."
The property was purchased from an institutional owner and consists of 382 units with average rents of $2,700. Located on the prestigious A1A with excellent retail frontage, Cardone plans to rename the property “10X Flagler Village,” reflecting his signature brand and investment philosophy.
When asked about the decision to pay cash, 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? At which time we will return capital to our investors and improve returns.”
This all-cash deal not only gives Cardone Capital a significant advantage over institutional investors and syndicators in the current high-interest rate environment but also underscores the exclusivity of its opportunities. By leveraging the power of its retail investor base, the company has been able to secure opportunistic deals and give investors access to assets that would otherwise be out of reach. Over the past 12 months, Cardone has distributed more than $65 million to investors which equates to an annual cash yield in excess of 6%.
Cardone’s bullish outlook on the real estate market is not just evident in his plans for the near future, but it also holds promise for investors. “We are set to close three more similar-sized deals before the end of June totaling half a billion dollars,” he stated, underlining his company’s aggressive growth strategy and commitment to delivering value and potential returns to its investors.
Since 2016, Cardone Capital has raised over $1.3 billion from retail investors across 24 funds and amassed a real estate portfolio consisting of over 13,000 apartment units across 40 multifamily properties along with over 500,000 square feet of commercial office space, including 10X Centre in Aventura, Florida, which houses Cardone Capital's headquarters.
As Cardone Capital continues to disrupt the real estate industry, it is clear that Grant Cardone’s visionary leadership and innovative investment strategies are paying off. With a track record of success and a growing portfolio of properties, Cardone Capital is well-positioned to capitalize on the opportunities presented by the current market, while providing everyday investors with access to institutional-grade real estate deals.
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