Grant Cardone, a crowdfunding multifamily syndicator, is one step closer to getting into the condo selling business.
On Thursday, U.S. Bankruptcy Judge Erik P. Kimball approved the $235 million sale of 101 Via Mizner in Boca Raton to a joint venture between the current owner, Penn-Florida Companies, and an affiliate of Cardone’s Aventura-based Cardone Capital. The joint venture plans to convert the distressed 366-unit apartment building at 101 East Camino Real into condos that could possibly net $400 million in sales, according to bankruptcy filings.
Cardone had previously submitted a $230 million stalking horse bid for 101 Via Mizner, but a court auction scheduled for the property was canceled as a result of the formation of the Penn-Florida and Cardone joint venture. In January, an affiliate of Penn-Florida, led by Mark Gensheimer, that owns 101 Via Mizner, filed for Chapter 11 reorganization, which postponed a UCC auction to sell the 3.1-acre project. Blackstone Mortgage Trust, the largest creditor, alleged that Penn-Florida failed to repay a $145 million loan when it matured.
Under a revised purchase and sale agreement, Penn-Florida would contribute $15 million toward the purchase, and Cardone’s affiliate would pay the remaining $220 million, which will go toward paying creditors, including Blackstone.
Cardone, a social media celebrity with more than 10 million followers combined, intends to sell shares of 101 Via Mizner’s new ownership entity to regular investors, as well as shares in 1,000 bitcoin (roughly $117 million).
Proceeds from individual condo sales could reach $400 million, of which $300 million would be distributed to equity investors, and the remainder would be split equally between Cardone and Penn-Florida, court records show.
Cardone will also partner with Penn-Florida to finish construction of a planned Mandarin Oriental-branded hotel adjacent to 101 Via Mizner, Cardone told The Real Deal. The project entails an 86-unit condominium and a 164-key hotel.
