Cardone Capital LLC, a Miami-based private equity firm that invests in multifamily properties, has launched a private placement fund, Cardone Fund X LLC, aimed at acquiring income-producing multifamily assets priced below market value.
Cardone Fund X is a private offering using rule 506(c) of Regulation D with a target raise of $50 million.
“This fund, unlike some of my previous funds, will be focused on more opportunistic assets created from the Covid crisis and shutdown,” said Grant Cardone, founder and chief executive officer of Cardone Capital.
Cardone said that the fund is targeting properties in high growth markets throughout the US. “I’m targeting areas that have a high net population gain,” he added. “These are the areas that will continue to have the highest demand for apartments and will give us the most appreciation.”
The minimum investment for Cardone Fund X is $250,000 and the maximum is $10 million by any one investor or LLC. The company noted that early investors are offered an 80/20 split on cash and appreciation if their funds are in before the property is identified.
Cardone said, “Our immediate impetus is on apartment quality real estate to add to our current portfolio, and we are in negotiations on properties at this time.”
Cardone Capital recently acquired Port Royale Apartments, a 553-unit multifamily property in Fort Lauderdale, after raising $50 million in equity through a crowdfunding campaign.
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 $425 million from investors through crowdfunding.
Cardone Capital currently has $1.9 billion in assets under management, and its portfolio is comprised of 26 properties with 8,275 units located in Florida, Georgia, Alabama, Texas and Maryland.