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Real estate mogul Grant Cardone has been bullish on South Florida for a while. He has his main headquarters in Aventura, FL and also bought the building next door, a glass tower he paid $93 million for in 2021. His newest acquisitions showcase his interest in Broward County, Florida, where favorable demographics may set the table for increased property values.
Earlier this month, Cardone Capital closed out Fund 24, its latest real estate investment fund, which raised $150 million. Cardone Capital raises money from accredited and non-accredited investors and offers monthly disbursements. The company has raised over $1.3 billion across its first 24 real estate funds.
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Fund 24 included 10X at Jacaranda, a 468-unit property on 31 acres in Plantation, FL. The property was formerly known as the Laurels at Jacaranda and has average rents of $2,200. Cardone paid cash for the property, telling Benzinga, “Why pay lenders 7.5% when we can share that with our investors? Our 15,000 investors love investing in Florida assets that cash flow from day one.”
Broward County’s coastal location between Miami and West Palm Beach appeals to real estate investors. Grant Cardone sees an opportunity in the current market, especially before expected interest rate cuts lead to increased activity from institutional buyers returning to the table. He’s already working on his next deal for Fund 25.
The centerpiece of that fund is a Class A, 331-unit multifamily asset in downtown Fort Lauderdale. Cardone acquired the neighboring property earlier this year and rebranded it as 10X at Flagler. Cardone’s firm is also under contract to purchase Edge at Flagler Village, another Fort Lauderdale complex that has 382 units, for more than $100 million. Cardone Capital Vice President Ryan Tseko told the South Florida Business Journal that the new building has 382 units and will be purchased for over $100 million in September.
The seller was the global investment manager Nuveen, which also sold the other two properties and three properties in Tampa and Fort Myers on the other side of the state that Cardone Capital also purchased. In an exchange with The Real Deal, Cardone said he believes Miami and Fort Lauderdale rents could double over the next five years. “The current market presents an ideal opportunity for cash buyers, like our investors, to acquire properties at a discount before values increase,” Cardone said.
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Cardone sees Florida as having advantages over other major cities. On X, he said: “Florida real estate will continue to win. Warm weather, business-friendly, zero income taxes, property protection, tourism, blue waters, proximity to the super wealthy fleeing New York, Boston Chicago, Los Angeles & San Francisco.”
Cardone may be bullish about the long-term prospects for Florida multifamily buildings and office space, but he remains a bit more fickle regarding his residences. Earlier this year, he listed his mansion in Golden Beach, FL, in Miami-Dade County. That home is on the market for $42 million or 646 Bitcoin. Cardone bought that property for $28 million from fashion designer Tommy Hilfiger. He is also rumored to be quietly shopping his Malibu beach house for $65 million. He bought that property in 2022 for $40 million. Cardone has often spoken about homeownership, calling it a nightmare and suggesting that the wiser path is to rent and put the money into assets that generate passive income.
Cardone’s investing pattern reflects the ongoing opportunity for real estate investors to make moves in the current market without becoming direct landlords. Whether through real estate crowdfunding funds like Cardone Capital, private credit offerings like EquityMultiple’s Ascent Income Fund, or fractional ownership opportunities like Arrived Homes, there are many ways that investors can generate passive income through real estate.
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This article “Florida Real Estate Will Continue To Win” — Grant Cardone Is Snatching Up Properties In This Popular County originally appeared on Benzinga.com
