Grant Cardone’s real estate investment firm Cardone Capital has acquired four multifamily properties in the Fort Lauderdale, Fla., metropolitan area totaling nearly 1,700 units for approximately $740 million. The properties will be rebranded 10X Living. They include two newly built assets in downtown Fort Lauderdale and two 1990s-era properties with value-add upside in two desirable West Broward County communities.
Cardone said in a prepared statement the combined acquisitions, essentially done simultaneously, represent the largest deal in his long career as a real estate investor. The four acquisitions round out a record year for the Cardone team, which acquired more than $1.2 billion in real estate, including almost 2,900 apartments. Cardone Capital’s multifamily portfolio now encompasses 35 properties with 11,552 units.
Ryan Tesko, Cardone Capital executive vice president, said in prepared remarks the firm competed against some of the largest real estate investors in the world for the four properties. In addition to being located in one of the fastest-growing regions in the United States, Tesko said they complement the three properties the firm already owns in the market.
Cardone paid for the assets with cash and bank financing and plans to raise $220 million through crowdfunding, including offering residents of the apartment buildings the opportunity to invest, according to the South Florida Business Journal.
Two of the properties, the 585-unit San Michele Collection, located at 1343 Saint Tropez Circle in Weston, Fla., and the 387-unit Colonnade Residences, situated at 1640 NW 128th Drive in Sunrise, Fla., were purchased for a combined price of $355 million, according to Berkadia, which arranged the sale and financing. Berkadia secured two three-year, floating-rate loans with two, 12-month extension options. Lender MF1 originated a $182.9 million loan for San Michele and a $97.93 million loan for Colonnade. Both properties were built in 1996.
Berkadia Senior Managing Directors Jaret Turkell and Roberto Pesant, along with Associate Director Omar Morales, marketed the portfolio on behalf of the seller, identified by Yardi Matrix as El-Ad National Properties of Boca Raton, Fla. Senior Managing Director Mitch Sinberg, Managing Director Matt Robbins and Vice President-Originations Hugo Hernandez of Berkadia Boca Raton secured acquisition financing on behalf of Cardone Capital.
San Michele has been renamed 10X Living Weston. Located about a 40-minute drive from downtown Fort Lauderdale, the gated waterfront community has a mix of two- and three-story rental townhomes ranging from 1,194 square feet to 2,074 square feet. Amenities include a fitness center, basketball and tennis courts, pool, spa, picnic area and lounge. It is close to the Weston Town Center, Sawgrass Mills shopping mall, Sawgrass International Corporate Park, FLA Live Arena and the Fort Lauderdale-Hollywood Airport.
The Colonnade Residences were rebranded 10X Living Sunrise. The garden-style community is a 30-minute drive to downtown Fort Lauderdale. The property is adjacent to the Sawgrass Mills shopping mall and is also near the Sawgrass International Corporate Park and FLA Live Arena. The community has one-, two- and three-bedroom units ranging from 852 square feet to 1,293 square feet. Amenities include a pool, sundeck, tennis court, clubhouse, lounge, fitness center and conference room.
Cardone owns another Sunrise multifamily property—the 501-unit 10X Living at Sawgrass, which was acquired in June 2019, when the asset was known as Nexus Sawgrass.
10X Living Las Olas Walk, formerly Las Olas Walk, located at 106 S. Federal Highway in Fort Lauderdale, was recently completed with 456 units and was 98.5 percent occupied at time of sale. ZOM Living broke ground on the property in January 2018. The asset has studio, one-, two- and three-bedroom units ranging in size from 523 square feet to 2,426 square feet. The property is downtown Fort Lauderdale’s only midrise community and features direct access to the New River. Amenities include a fitness center, clubhouse and swimming pool. 10X Living Las Olas Walk is within walking distance of more than 100 retail and dining options as well as more than 8 million square feet of office space.
10X Living Riverwalk has 260 units and was previously known as 4 West Las Olas. Located at 4 W. Las Olas Blvd., it was 93.5 percent occupied at the time of sale. The project, built by Elevate Partners of Fort Lauderdale and NCC Development Group, received an $85 million construction loan in February 2018. Yardi Matrix listed the owner as Elevate Partners. The property has studio, one-, two- and three-bedroom units as well as penthouse apartments that have one, two and three bedrooms. Square footage ranges from 588 square feet to 1,376 square feet, according to Yardi Matrix. Amenities include a fitness center, business center, clubhouse and swimming pool. Located in downtown Fort Lauderdale on the New River, the property is situated at the connecting point of Las Olas Riverfront and Las Olas Boulevard, giving residents walkability to offices, retail stores, dining, nightlife and the Brightline station, a train service between Miami and West Palm Beach, Fla.
Square Mile Capital LLC originated two separate loans for these purchases: $174 million for 10X Living Las Olas Walk and $103.5 million for 10X Living Riverwalk.