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Grant Cardone Fund Wins Court Approval for $235M Boca Raton Apartment Deal

Company: 

Cardone Capital

A fund led by investor Grant Cardone received U.S. Bankruptcy Court approval to acquire the 366-unit 101 Via Mizner Apartments in Boca Raton, FL, for $235 million.

U.S. Bankruptcy Judge Peter D. Russin approved the sale of the luxury apartment complex on July 11, authorizing Mizner 366 JV LLC to acquire the property free and clear of liens. The transaction was expected to repay the property’s secured mortgage and unsecured claims.

The new joint venture includes a $15-million initial capital contribution. Cardone’s fund will hold the majority interest, while the debtor will retain a 7.4% stake and an option to purchase the property for $300 million for one year. The JV agreement also provides a potential path to convert the apartment property to condominiums.

The property’s owner, Via Mizner Owner I LLC, an affiliate of Penn Florida, filed for Chapter 11 bankruptcy protection in January. The filing halted a UCC foreclosure auction initiated by Blackstone related to a $195 million mortgage.

CBRE marketed the property for the bankruptcy estate.

These are some of the reasons the Via Mizner Apartments transaction was selected for ApartmentBuildings.com’s AB 100 Transaction of the Year Award, which recognizes those who demonstrate creativity, skill and success in the multifamily industry.

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