Grant Cardone Strikes Again with Another South Florida Multifamily Acquisition
Posted by Grant Cardone
Cardone Capital LLC, announces their acquisition of Camino Real Apartments, a 235-unit apartment community located in downtown Boca Raton.
Cardone Capital LLC, announces their acquisition of Camino Real Apartments, a 235-unit apartment community located in downtown Boca Raton. This acquisition is part of the firm’s strategy to provide investors with the opportunity to participate in institutional-grade real estate deals in high-growth markets.
The acquisition of the nine-story midrise continues the firm's momentum as it is Cardone Capital’s second acquisition in the desirable Boca Raton market and its fourth acquisition in Palm Beach County. Since the beginning of 2020, the firm has acquired six apartment communities with 2,150 units.
“This property is located in the heart of Boca Raton’s commerce, hospitality, and retail district” says Grant Cardone, CEO of Cardone Capital.
The property features an average unit size of 1,117 square feet and several resort-like amenities, including an ocean view sundeck, private pool area, fitness center, movie theatre, racquetball court, and steam rooms.
The property, which has been renamed “10X Living at Mizner Park”, is conveniently located on the edge of Boca Raton’s lifestyle center, Mizner Park, and adjacent to Trader Joe’s, The Fresh Market and Publix. Additionally, the property is steps away from the Mandarin Oriental which further illustrates the location’s desirability.
Mr. Cardone also commented on the local market saying “The migration trends to Florida continue as businesses and people seek more affordable and tax-friendly areas to live and work as compared to other parts of the country.”
The Boca Raton market has attracted many institutional real estate owners, including Starwood, Greystar, AvalonBay, GID, Camden, Prudential, TIAA, Goldman Sachs, CalPERS, and MSD Partners. Mr. Cardone purchased the property himself and is offering accredited investors the chance to participate in the investment alongside him through Cardone Capital’s most recent equity fund, Cardone Equity Fund XIV, LLC.
A cap rate can also determine how much an investor wants to pay for a property. If your criteria involves a certain cap rate, you can figure out what the price would have to be to get that cap rate based on the current net income.
Cardone Capital EVP, Ryan Tseko, said “This is a true value-add opportunity for our investors. We purchased the property below replacement cost and plan to make significant enhancements focused on unit interiors and the property’s common areas.”
The firm’s value-add business plan for the property includes upgraded kitchens and finishings in each unit, a modernized fitness center, and a lobby that will rival any five-star hotel.
Mr. Tseko adds “Once the upgrades are complete, we anticipate increased rental rates at a premium to current, in-place rents. This should drive increased cash flow and value for our investors.”
This purchase brings Cardone Capital’s multifamily portfolio to 9,218 units across 29 properties with a value of approximately $2.2 billion.
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**Targeted IRR and Equity Multiple listed above represents the property’s internal rate of return (IRR) or Equity Multiple based on the property’s forecasted cash flows generated over a period of time and the amount invested in the property. This is different from the forecasted IRR or Equity Multiple to the investor in the applicable fund or other investment vehicle.
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