Miami—Locally-based privateequity real estate firm Cardone Capital has closedtwo funds topurchase four properties worth $350 million. The firm also launcheda new opportunity fund focused on distressed properties.

|

Funds VI and VIII wereoversubscribed by $4.2 million with Cardone Capital raising $112million of equity and capital. The properties purchased through thefunds include the 288-unit 10X Living at Panama City Beach;Columbia, MD's 531-unit 10X Living at Columbia Towncenter;a 360-unit retreat at Panama City Beach; and 294-unit Addison Placein Naples.

|

Cardone Capital says it expectsan annual return of 6-8% and total return of 15% from theproperties. After its recent purchases, Cardone Capital's portfolionow includes 7,722 units and assets valued at $1.7billion.

|

The firm also announced a $6.3million distribution to investors and the opening of Fund IX,Cardone Capital's Opportunity Fund. The fund is geared toward distressed properties,with a guaranteed 80/20 split to accredited investors who invest inaccordance with the fund's standards, Cardone Capitalwrote.

|

Cardone Capital specializes inmultifamily apartment buildings across the southeast United States,with properties in Florida, Georgia, Tennessee, Texas, Alabama andMaryland.

|

In 2018, the firm acquired twoOrlando and Houston properties by raising $45 millionvia crowdsourcing. The firmclosed the deal in less than seven months by raising funds throughsocial media platform Facebook, LinkedIn, Instagram, Twitter andSnapchat, GlobeSt. reported.

|

Cardone assumed an existing Fannie Mae loan with the FairfieldGroup for the Houston property and used a Teachers Insurance &Annuity Association of America loan for the Orlando debt. CardoneCapital said the endeavor exposed a wider range of investors tohigh-value property.

|

"The real estate we are buyinghas traditionally been available only to the large institutions(such as Blackstone, Vanguard, Fidelity, Fairfield) and out ofreach to everyday investors," said Cardone Capital CEO and founderGrant Cardone at the time. "I am making extraordinary investmentsavailable to the everyday person."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Victoria Hudgins

I am a reporter for Legaltech News where I cover data privacy, cybersecurity and technology's impact on the business and practice of law.