Real estate mogul Grant Cardone has announced a significant acquisition, purchasing a portfolio of five apartment communities across South Florida for $58 million. The deal, finalized through his investment company Pacific Star 5, Inc., encompasses over 1,000 units and marks one of the largest private multi-family real estate transactions in Florida for 2012.
Key Takeaways
- Significant Investment: Grant Cardone acquired 1,016 apartment units across five communities for $58 million.
- Strategic Locations: The portfolio includes properties in Stuart, Port St. Lucie, and Palm Bay, Florida.
- High Occupancy: The properties boasted an impressive 98% average occupancy at the time of closing.
- Market Outlook: The acquisition is driven by strong population growth and a lack of new supply in the region.
- ‘Renter Nation’ Trend: Cardone believes the shift towards a "renter nation" presents a stable, long-term investment opportunity.
Strategic Acquisition Fueled by Growth and Demand
The newly acquired portfolio, totaling 1,076,112 square feet, was purchased from the Max and Marian Farash Charitable Foundation. Cardone cited the robust population growth in the region as a primary driver for the investment. Furthermore, the lack of new apartment construction projected for the next three years in the Stuart, Port St. Lucie, and Palm Bay markets, with the last new product delivered in 2008, presented a compelling opportunity.
Confidence in the Rental Market
"Multi-family product across Florida is in high demand which has resulted in rising rent rates combined with very little to no new product being constructed," stated Grant Cardone, CEO of Pacific Star 5, Inc. He expressed confidence that this type of acquisition offers an excellent financial opportunity, capitalizing on a stable and dependable long-term investment. Cardone highlighted the changing demographics and the ongoing housing crisis, which he believes are transforming the United States into a "renter nation."
This latest purchase aligns with Cardone’s goal to double his acquisition volume for 2012. A professional real estate investor, Cardone has a history of buying and selling properties across the United States, with previous investments in markets like San Diego, Austin, and Charlotte. His relocation to Miami from Los Angeles was also noted, stemming from concerns about California’s economic and political climate.
Transaction Details and Support
The transaction was facilitated by a team of professionals from Capital Markets Multi-Housing group, including Robert Given, Richard Tarquinio, Shelton Granade, William Roohan, and Martha Hastings. Legal and title services were provided by Marcie Kammerman, and William Cave of Wells Fargo arranged the Fannie Mae funding for the deal.
Cardone is also known for his work as a best-selling author, reality TV personality, radio show host, and business consultant, focusing on revenue growth, customer satisfaction, and employee motivation.