Grant Cardone’s investment management company, Cardone Capital, just announced its acquisition of Promenade Corporate Center, a trophy AAA office property in Scottsdale, Arizona.
The asset was purchased from a renowned institutional seller represented by Barry Gabel and his team at CBRE. The acquisition represents an attractive opportunity for Cardone Capital’s investors to achieve superior returns through a targeted value-add program which should drive long-term rent growth and capital appreciation.
Promenade Corporate Center is strategically located in the heart of Scottsdale, specifically in the prestigious Airpark/Kierland submarket. The asset boasts roughly 256,308 rentable square feet of multi-tenanted office space surrounded by over 370 high-end retail stores and restaurants within a one-mile radius, including Trader Joe’s, Capital Grille, Maggiano’s, Eddie V’s, Maestro’s, PF Chang’s and Dominick’s Steak House. The property is currently occupied by a solid mix of investment-grade and credit tenants.
The targeted renovations will equip what is already one of the highest-quality office projects in the southwestern United States with the most modern amenities and designs. Promenade Corporate Center will be rebranded under the Cardone name and will offer the same high-end amenities that its tenants have come to expect from Cardone-owned and operated assets.
In addition to leasing space to new tenants, the Cardone family of companies is also planning to establish a second headquarters at the property as it continues to expand its footprint to the West Coast. Cardone Capital, Cardone Ventures, 10X Health and Cardone Training Technologies will occupy approximately 40,000 square feet of office space over the next year to meet this expansion goal.
Cardone Capital completed fundraising for Cardone Equity Fund 21 which it used to acquire Promenade Corporate Center. The asset acquisition was oversubscribed by a whopping $40 million, highlighting the pent-up demand for opportunistic real estate investments. Retail investors gained access to a trophy asset in an A+ market at a basis that is below replacement cost.
CEO Grant Cardone said, “This fund acquired a trophy asset with a AAA location and a high-quality income stream at a price that was not available earlier this year. We believe the property offers cash flow upside and appreciation to our investors for the right owner/operator who can properly activate the property Investor interest was very strong.”
Cardone Capital recently launched Cardone Equity Fund 22 which will target institutional quality assets in high-growth markets and allow investors to capitalize on Grant Cardone’s unique ability to identify special situations, including distressed sales.
Cardone has a long track record of identifying quality assets in unique circumstances, acting quickly and decisively, and aggressively negotiating strong terms on behalf of his investors. According to Cardone, “most institutions and big banks are pencils down in this environment while I am looking for unique investment opportunities. Because of the reputation we’ve gained in the marketplace as a sure-to-close buyer, I’m being presented with opportunities that others are not able to gain access to.”
Cardone Equity Fund 22 is the latest in a long line of fundraisings for Grant Cardone and his team at Cardone Capital. The funds are aimed at purchasing real estate assets at below replacement cost with a focus on near-term income generation and/or long-term value creation.
Since 2016, Cardone Capital has raised approximately $935 million from over 11,500 accredited and non-accredited investors. The company’s real estate portfolio includes over 11,900 apartment units across 38 properties including over 500,000 square feet of commercial office and retail space.
Cardone says he created Cardone Capital to provide everyday investors access to the institutional-grade real estate deals that are normally reserved for only the largest investors.
Grant Cardone, individually or through Cardone Capital LLC, manages a real estate portfolio valued at over $4 billion. Cardone is also known as a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. He has been investing in real estate since the mid-1990s.
Retail investors can view upcoming private offerings from Cardone Capital on the company’s website.
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