UPDATED, Dec. 12, 11:36 a.m.: Grant Cardone invests in real estate nationwide, but for his biggest multifamily portfolio deal, he chose South Florida.
The Golden Beach-based social media star, motivational speaker and founder of the 10X business growth platform, closed on the $744 million purchase of four properties: two near downtown Fort Lauderdale, one in Sunrise and another in Weston, according to his spokesperson.
The portfolio of roughly 1,700 units will be rebranded under Cardone’s 10X stamp. The properties are 99 percent leased, Cardone said.
The four purchases closed on Friday, after Cardone first announced his intent to buy the projects in October. He declined to disclose the price of each property.
Cardone, who bought the multifamily properties through his Cardone Capital real estate investment arm, said he took out roughly $550 million in a senior debt acquisition loan.
Cardone said he paid cash for the $194 million down payment. He will open the portfolio to his unique fund structure that crowdfunds from smaller investors using his high social media following.
The properties are:
Las Olas Walk
The 456-unit Las Olas Walk, which will be anointed 10X Living Las Olas Walk. Seller Zom Living, based in Orlando, developed the two eight-story buildings this year at 106 South Federal Highway.
The complex has studios to three-bedroom apartments, ranging in monthly rent from $1,892 to $5,225, according to Apartments.com.
Four West Las Olas
The 25-story, 260-unit Four West Las Olas, rechristened 10X Living Riverwalk in an homage to its location overlooking the New River. The selling entity, tied to Elevate Partners, completed the building last year at Four West Las Olas Boulevard.
The building offers studios to three-bedroom apartments, ranging in monthly rent from $2,465 to $7,748, according to Apartments.com.
Colonnade Residences at 1640 Northwest 128th Drive in Sunrise
The 387-unit, garden-style Colonnade Residences, now 10X Living Sunrise, at 1640 Northwest 128th Drive in Sunrise and across the street from the Sawgrass Mills shopping mall. The community offers one-, two- and three-bedroom units, ranging in monthly rent from $1,646 to $2,242, according to Apartments.com.
San Michele at 1343 St Tropez Circle in Weston
The 585-unit, garden-style San Michele at 1343 St Tropez Circle in Weston. It is now called 10X Living Weston. It consists of two-story and three-story rental townhouses, according to a Cardone news release. Apartments.com shows townhouses range from two to four bedrooms, with monthly rents from $2,025 to $3,300.
About $20 million in capital improvements, mostly renovations to units, are planned for the Sunrise and Weston communities, as they are older, Cardone said.
Cardone now is targeting to raise $200 million across the portfolio from retail investors as opposed to institutional giants and family offices.
He opened up funds to accredited and non-accredited investors, Cardone said.
Accredited investors, who are required to put up at least $100,000, will receive a monthly cash flow; and the non-accredited ones, who are required to put up from $1,000 to $100,000, will receive a quarterly cash flow, he said.
This is in line with his strategy to pave a path for “the little guy” — who is usually shut out of property investment -– to enter the market, Cardone said.
He draws his investors from his social media following of 3.5 million Instagram followers and nearly 530,000 followers on Twitter. Cardone holds his 10X Growth Conference each year.
It is “very difficult for the average American to truly own a piece of the greatest wealth-building vehicle in the world, which is income-producing real estate,” Cardone said.
Not all of his investors have been happy with their investments. One California investor sued Cardone Capital in 2020, alleging the company misled him, including about the rate of return. A federal judge dismissed the suit in May, saying the investor documents were clearly disclosed.
The latest portfolio deal comes on the heels of several other purchases this year, also in South Florida. In May, Cardone paid $69 million for a 235-unit Boca Raton apartment community, rebranded as 10X Living at Mizner Park.
In June, Cardone bought an Aventura office complex for $93 million next to his 10X headquarters, where his Cardone Capital and his sales training company Cardone Training Technologies are based. At the time, he said his long-term vision for the property is developing a mixed-use community with affordable housing. But in the short-term, his staff would move into the newly acquired offices as vacancies open up.
Cardone now lives in Golden Beach, in a mansion he bought from Tommy Hilfiger and his wife for a reported $28 million.
The Broward multifamily portfolio brings Cardone’s multifamily holdings to roughly 12,000 units, mostly in South Florida.
An earlier version of this story incorrectly stated that the deals had closed. They closed late on Friday, a spokesperson said.