Cardone Capital LLC, a Miami-based private equity firm that invests in multifamily properties across the southeast United States, has purchased Port Royale Apartments, a 553-unit apartment community in Fort Lauderdale. The purchase price was not disclosed.
The company said that it raised $50 million in equity through a crowdfunding campaign, and CBRE Group Inc. (NYSE: CBRE) provided financing with a 10-year interest-only note at a fixed rate of 2.3 percent.
Situated along the Intracoastal Waterway, Port Royale is one of three waterfront apartment communities in Broward County. The property spans approximately 22 acres, with a private marina and a 161-unit mid-rise building situated on 380 feet of water frontage.
“Port Royale is ideally located directly between Boca Raton and Fort Lauderdale, providing residents with an easy commute to two large business districts,” said founder and chief executive officer Grant Cardone.
Cardone points out that Fort Lauderdale is one of the fastest growing cities in Florida. In the last 10 years, the number of people living in the area climbed by 11.7 percent, compared to the 6.3 percent national population growth over the same period.
This acquisition brings the firm’s portfolio up to 8,275 units across 26 properties, and a total of $1.9 billion in assets under management.
Robert Given of Cushman and Wakefield PLC (NYSE: CWK), brokered the transaction on behalf of the seller, Waterton.
Cardone Capital acquires and manages Class A multifamily properties, and sponsors investment vehicles for accredited investors through Regulation D offerings and for non-accredited investors through Regulation A offerings. To date, the company has raised more than $440 million from investors through crowdfunding. Cardone Capital’s portfolio currently consists of properties in Florida, Texas, Alabama, Georgia, and Maryland.