April 16, 2024

Author and motivational speaker Grant Cardone launched two funds to acquire four apartment complexes in Broward County for a combined $750 million.
Cardone, the CEO of Aventura-based Cardone Capital, has tapped many of his 13 million followers on social media to raise money through crowdfunding. His firm operates the funds based on U.S. Securities and Exchange Commission guidelines: one for accredited investors and one for non-accredited investors.
The minimum investment for the non-accredited fund is $1,000.
“It’s very expensive to create a non-accredited fund, but I grew up as an everyday person and the fact that I made it doesn’t mean I should forget about where I can from and not allow everyday people to invest with me,” Cardone said.
Cardone said he aims to raise $230 million in investor funds for the four apartment complexes. Three days after launching them, Cardone Capital has raised $42 million, mostly from non-accredited investors, he said. Most of the investors came to him through social media, such as Facebook, Instagram, Tiktok, Youtube and Linkedin, he added.
“I think the properties average a 6% return in year one, which is phenomenal for this asset class,” Cardone said. “Even if the return is 4%, conservatively, that is 32 times what banks are paying.”
Cardone expects the four acquisitions to close by Dec. 10. He has them under contract based on cash and loan commitments. The investor funds would come in after the closings.
The biggest apartment complex in the deal will sell for about $260 million, he said. It is the 456-unit Las Olas Walk at 106 S. Federal Highway in Fort Lauderdale. ZOM Living built it earlier this year.
The building, which will be rebranded 10X Las Olas Walk after his brand of business books and seminars, is 97% occupied with rents averaging $2,300.
“I believe these rents in the next 10 years will be twice that,” Cardone said.
The other apartment complexes Cardone Capital has under contract are in Fort Lauderdale, Weston and Sunrise. He declined to identify them.
Cardone said he’s acquired nearly $3 billion in South Florida real estate over the past 10 years. His goal is to acquire another $2 billion in real estate here next year.
“My goal is to get to 40,000 units and sell the entire portfolio to one group,” Cardone said.
In 2020, an investor filed a class action lawsuit against Cardone and Cardone Capital in federal court in California. The suit alleged investors in Cardone’s crowdfunded venture were misled on their rates of return. A federal judge dismissed the case with prejudice earlier this year.
Sign up here for the Business Journal’s free morning and afternoon daily newsletters to receive the latest business news impacting South Florida. For more business intelligence, follow us on LinkedInFacebookTwitter and Instagram.
It’s time to celebrate the best in South Florida real estate. Join us for an awards program where we’ll share the highlights of each category and announce the winners!
© 2022 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated January 1, 2021) and Privacy Policy and Cookie Statement (updated July 1, 2022). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.


About Author

Leave a Reply