Grant Cardone’s Bold Investment Moves in Florida Real Estate

Real estate mogul Grant Cardone has expressed unwavering confidence in the potential of the South Florida market. With his headquarters located in Aventura, FL, Cardone has expanded his footprint by acquiring a nearby glass tower for $93 million in 2021.

A Focus on Broward County

Cardone’s recent acquisitions highlight his keen interest in Broward County, a region characterized by its favorable demographics that could drive property values higher.

• Fund 24 Launch: Earlier this month, Cardone Capital successfully closed Fund 24, raising an impressive $150 million.
• Broader Reach: The firm has amassed over $1.3 billion across its first 24 real estate funds, appealing to both accredited and non-accredited investors.

Key Properties in the Pipeline

Among the key developments in Fund 24 is the acquisition of 10X at Jacaranda, a 468-unit property in Plantation, FL. Formerly known as the Laurels at Jacaranda, the property now boasts average rents of $2,200. Cardone remarked, “Why pay lenders 7.5% when we can share that with our investors? Our 15,000 investors appreciate Florida assets that provide cash flow from day one.”

Potential for Growth

With a coastal location between Miami and West Palm Beach, Broward County is attracting investment interest. Cardone is keen to capitalize on market opportunities before anticipated interest rate cuts stimulate activity from institutional buyers. He is already strategizing for Fund 25.

Exciting New Ventures

Fund 25’s centerpiece will be a Class A, 331-unit multifamily asset located in downtown Fort Lauderdale. Cardone’s firm is also under contract to acquire Edge at Flagler Village, a complex consisting of 382 units, for over $100 million.

According to Cardone Capital Vice President Ryan Tseko, the purchase is set to transpire in September. The properties are being sold by Nuveen, a global investment manager.

Long-Term Vision for Real Estate

In discussions with The Real Deal, Cardone voiced his belief that rents in Miami and Fort Lauderdale could potentially double within five years. “The current market presents an ideal opportunity for cash buyers, like our investors, to acquire properties at a discount before values increase,” he stated.

Why Florida Stands Out

Cardone sees various advantages in Florida compared to other major cities:

• Warm climate
• Business-friendly environment
• No income tax
• Tourism hotspots
• Proximity to wealthy individuals relocating from Northeastern cities

Shifting Personal Real Estate Strategy

While Cardone is optimistic about the multifamily and office space market, he has taken a different approach to his residential properties. Recently, he placed his Golden Beach mansion on the market for $42 million, or 646 Bitcoin. This property was acquired from fashion designer Tommy Hilfiger for $28 million. Additionally, reports suggest he may be looking to sell his Malibu beach house for $65 million, after purchasing it for $40 million in 2022.

Cardone has publicly expressed skepticism about homeownership, labeling it as a potential “nightmare.” Instead, he champions investing in income-generating assets.

The Future of Real Estate Investment

Cardone’s investment strategy reflects the growing opportunities available in the current real estate market, including options for those who prefer not to be direct landlords. Various investment models are now accessible to those looking to participate in real estate:

• Real Estate Crowdfunding: Platforms like Cardone Capital offer opportunities for passive income.
• Private Credit Offerings: EquityMultiple’s Ascent Income Fund provides alternative options.
• Fractional Ownership: Arrived Homes allows for shared investment in properties.

Exciting Investment Options

EquityMultiple’s ‘Alpine Note — Basecamp Series’ is capturing interest with its attractive 9% rate of return (APY) over a three-month term and a minimum investment of $5K. As the Federal Reserve prepares to cut interest rates, it may be an opportune time to lock in favorable returns. Furthermore, this investment can be rolled into additional Alpine Notes for compounded gains.

Whether you’re exploring fractional investment opportunities or venturing into crowdfunding, resources like the Benzinga Real Estate Screener can help you discover the latest offerings.

Grant Cardone’s investments highlight the robust potential of Florida’s real estate landscape as he navigates ongoing market trends to capitalize on growth opportunities.