Grant Cardone closes out another nine-figure real estate fund as economic worries prompt investors to seek out stable cash flow and greater long-term gains.
Aventura, FL, Aug. 23, 2024 – Real estate fund manager Grant Cardone just announced that his firm, Cardone Capital, has closed out its latest $150 million fund. Fund 24, which was fully subscribed by retail investors, acquired a Class A multifamily real estate asset in South Florida and is well-positioned to capitalize on the submarket’s rapid economic growth.
Grant Cardone
Cardone Capital is experiencing a surge of interest from individual investors who are reallocating funds from the stock market into real assets. Increased stock market volatility and economic concerns are prompting many investors to rethink their investment strategies with multifamily real estate emerging as an attractive alternative asset class.
Recent economic indicators have heightened investor concerns. Unemployment has reached a nearly three-year high of 4.3%, and job growth reports show lower-than-expected numbers. In response, Federal Reserve Chairman Jerome Powell is hinting at potential rate cuts in September, signaling a shift in the economy.
Grant Cardone, CEO of Cardone Capital, views these economic shifts as a prime opportunity for real estate investors. “I expect rate cuts to cause a surge of activity in the multifamily market as institutional buyers come back to the table and drive up prices,” Cardone stated. “The current market presents an ideal opportunity for cash buyers, like our investors, to acquire properties at a discount before values increase.”
With Fund 24 fully subscribed, Cardone Capital is preparing to launch its next fund to accommodate increased investor demand.
Why Investors Were Quick to Fund Cardone’s Most Recent Acquisition
The centerpiece of Fund 24 is the recently acquired 10X at Jacaranda, a 468-unit property situated on 31 acres in Plantation, Florida. This property exemplifies Cardone’s investment strategy:
- Prime Location: Situated in one of Florida’s hottest markets, with an average household income 45% above the national average.
- Strong Demographics: 76% of residents are in white-collar professions, with 6,700+ new jobs projected for the area in 2024.
- Immediate Cash Flow: Purchased at a significant discount to replacement value, the property has generated substantial cash flow from Day One.
- Value-Add Potential: Below-market rents provide an opportunity to increase cash flow and enhance property value during the first year of ownership.
- Strategic Financing Opportunity: Future financing options could return a substantial portion of investors’ capital while maintaining their ownership interest in the deal.
“We’re taking advantage of a unique market opportunity,” said Cardone. “While many institutional investors remain sidelined due to high interest rates, we’re able to move quickly with all-cash offers, securing prime properties at 40-50% below replacement cost.”
Cardone Capital investors remain bullish on the South Florida market, which has been attracting billions in wealth and an influx of high-paying jobs. Amazon founder Jeff Bezos recently left Seattle to build a mega-mansion in Miami’s “Billionaire Bunker” neighborhood, and Ken Griffin is moving Citadel’s headquarters to Miami after building a $1 billion office tower.
“Florida’s economy is ranked as the strongest in the country and is on track to be a top 10 global economy by 2030,” Cardone noted. “With 5,700 people moving into the state each week, the demand for high-quality apartment units is exploding.”
Cardone Capital’s Track Record and Market Dominance
Since December 2023, Cardone Capital has invested nearly half a billion dollars in all-cash transactions, positioning itself as one of the most active players in the multifamily real estate market. The firm’s success with Fund 24 adds to its already impressive track record:
- Nearly $350 million distributed to investors since the firm’s inception, including $7.87 million in August 2024
- Portfolio approaching 14,000 apartment units across 41 multifamily properties
- 500,000+ square feet of commercial office space
Cardone Capital is providing individual investors with access to institutional-quality real estate deals that would otherwise be out of reach.
“We’re giving everyday investors the opportunity to participate in deals that were once reserved for large institutions,” Cardone explained. “We’re buying trophy assets that you won’t find on a crowdfunding website or from your typical syndicator.”
Notably, Cardone Capital is seeing a record number of investors converting their 401(k)s and IRAs to real estate investments. “People are realizing that traditional retirement accounts are too vulnerable to the market shifts we’re seeing,” Cardone noted. “By investing in real estate through Cardone Capital, they’re securing a more stable future with consistent cash flow and the potential for significant capital appreciation.”
Fund 25 Launch
For those who missed out on Fund 24, Cardone Capital is preparing to launch its next offering. Fund 25 is set to close on a Class A, 331-unit multifamily asset in downtown Fort Lauderdale’s most desirable neighborhood. The firm acquired the neighboring property earlier this year and received commitments from investors for the total amount within a week of announcing the deal.
“The demand is unprecedented,” said Cardone. “Investors recognize the unique opportunity we’re offering in one of the hottest real estate markets in the world.”
It’s clear that Grant Cardone’s visionary approach is resonating with investors seeking stable cash flow and long-term capital appreciation, while traditional investments are becoming more volatile.
