Cardone Capital Pays $89.75M for 282 Naples Apartments

Cardone Capital, the Aventura-based syndicator run by Grant Cardone, paid $89.75 million for Orchid Run, a 282-unit apartment community at 10991 Lost Lake Drive in Naples, adjacent to the gated Grey Oaks country club. The price works out to $318,000 a unit for the 2015-built, garden-style property. Berkadia’s Matt Mitchell and Chris Burtner represented the seller, an affiliate of The Inland Real Estate Group of Companies.

Why it matters

Cardone Capital raises capital almost entirely from retail investors and has built its brand on South Florida multifamily. This deal is neither: Naples is a two-and-a-half-hour drive from Aventura, and $318,000 a unit is a materially richer basis than what stabilized Palm Beach and Broward product has traded for this summer. For anyone underwriting Florida multifamily right now, the read is that a well-capitalized, retail-funded buyer is willing to pay a premium to get out of its home market and into Southwest Florida’s tighter supply pipeline. That is a signal worth tracking, not a verdict on the deal, but it should move how sponsors bidding against Cardone Capital price their own next offer.

The numbers

The $89.75 million price on 282 units breaks down to 108 one-bedrooms, 126 two-bedrooms and 48 three-bedrooms averaging roughly 1,040 square feet, or $318,000 a unit. Three weeks earlier, on July 24, Kamson Corporation and Scopus Property Management paid $225,000 a unit for the 400-unit Ponte Verde at Palm Beach Lakes in West Palm Beach, a comparable-vintage, stabilized rental asset. Orchid Run’s basis runs about 41% above that trade. The purchase brings Cardone Capital’s portfolio past 14,800 apartment units and roughly $5.4 billion in assets under management, according to Berkadia’s release.

What’s next

Cardone Capital told Berkadia it has several hundred million dollars of additional multifamily acquisitions underway across its core Florida and Sun Belt markets, meaning more bids at this basis should surface soon. Sponsors and brokers working South Florida multifamily now have a live data point on what a well-funded outside buyer will pay to enter Southwest Florida, and it sits well above where the tri-county market has been clearing this summer.