Cardone Capital, led by CEO and author Grant Cardone, purchased the Port Royale Apartments in Fort Lauderdale thanks to a crowdfunding campaign and a big loan.
Crowdfunding is a relatively new way to purchase commercial real estate, but it can be effective with a big enough platform. Cardone, who is well known for his 10X Rule series of books and events, certainly has that platform.
This is one of the biggest crowdfunding real estate deals in South Florida.
Cardone Capital said it raised $50 million for the purchase of the 533-unit apartment complex on the Intracoastal Waterway. That was combined with a $79.24 million mortgage from CBRE Multifamily Capital to execute the deal. The loan had a 10-year interest-only financing rate of 2.3%.
The total purchase price wasn’t disclosed, but it was at least $129.24 million, given the sum of the loan and the crowdfunding.
The seller, Waterton, was represented by Robert Given of Cushman & Wakefield.
The transaction did not take place with a typical deed. Instead, the managing member of Port Royale Propco LLC, the Delaware-registered company that owns the apartment complex was changed from Waterton to Cardone. This means the sale did not require documentary stamp taxes to be paid, which is required for a deed transfer.
“Port Royale is ideally located directly between Boca Raton and Fort Lauderdale, providing residents with an easy commute to two large business district,” said Cardone, whose company is based in Aventura. “The location provided an opportunity to purchase an irreplaceable piece of real estate.”
The Port Royal Apartments are located at 3201 and 3300 Port Royale Drive and 3101 Port Royale Blvd. They were built in 1988 and last traded for $94 million in 2015.
Cardone Capital has 8,275 units in 26 properties in its real estate portfolio. It has raised over $440 million through crowdfunding to date.
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