STRATEGY
ASSETS
CARDONE ’ S C OLUMN :
Buyers Must Be Creative as U.S. Dollars Race to Real Estate
WHAT A NEWFOUND APPRECIATION FOR REAL ASSETS MEANS FOR THE FUTURE
by Grant Cardone
eal Estate buyers have to get super creative to buy real estate at this moment as the wealthy are replacing cash reserves with real assets. The world thought the pandemic was going to stop real estate. Not only did it not stop real estate, it set most markets on fire! While the past 18 months has proved to be filled with unexpected surprises, none has been greater than the rush of U.S. dollars to real assets. This includes single-family homes, second homes, multifamily real estate, industrial R
and even retail and office. It would seem that some of COVID-19’s bi-product was the greatest print of U.S. dollars in history and a new appreciation for real assets. I have three executives at our company trying to purchase proper- ties and struggling to find inventory, with each of them getting outbid on properties. And this phenomenon is not just constrained to residen- tial real estate. I closed a 219,000 square foot, 11-story office building in Aventura called Harbour Center and the competition for this A-class
property was five major institutions and myself. This was a $93,000,000 transaction I had been tracking for two and half years, and I won because I was very aggressive on terms and was willing to put non-re- fundable money at risk with the pur- chase and sale agreement. The same week I closed a 235-unit apartment complex in Boca Raton, for $69,000,000, purchased off mar- ket from a group who just closed on 14,000 units. Again, I reached out to the owner and asked him, “Is there anything you just bought that you
56 | think realty magazine :: august 2021
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