Miami—Locally-based private equity real estate firm Cardone Capital has closed two funds to purchase four properties worth $350 million. The firm also launched a new opportunity fund focused on distressed properties.
Funds VI and VIII were oversubscribed by $4.2 million with Cardone Capital raising $112 million of equity and capital. The properties purchased through the funds 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 Place in Naples.
Cardone Capital says it expects an annual return of 6-8% and total return of 15% from the properties. After its recent purchases, Cardone Capital's portfolio now includes 7,722 units and assets valued at $1.7 billion.
The firm also announced a $6.3 million 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 in accordance with the fund's standards, Cardone Capital wrote.
Cardone Capital specializes in multifamily apartment buildings across the southeast United States, with properties in Florida, Georgia, Tennessee, Texas, Alabama and Maryland.
In 2018, the firm acquired two Orlando and Houston properties by raising $45 million via crowdsourcing. The firm closed the deal in less than seven months by raising funds through social media platform Facebook, LinkedIn, Instagram, Twitter and Snapchat, GlobeSt. reported.
Cardone assumed an existing Fannie Mae loan with the Fairfield Group for the Houston property and used a Teachers Insurance & Annuity Association of America loan for the Orlando debt. Cardone Capital said the endeavor exposed a wider range of investors to high-value property.
"The real estate we are buying has traditionally been available only to the large institutions (such as Blackstone, Vanguard, Fidelity, Fairfield) and out of reach to everyday investors," said Cardone Capital CEO and founder Grant Cardone at the time. "I am making extraordinary investments available to the everyday person."
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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.
