CARDONE REIT I LLC
Dear Investor,
I really hate to be an “I told you so” type of guy, but I did tell you. The casino known as the stock market is in a free fall. Prices for paper assets finally had their bubble burst. Let’s
run through some stats as of May 10th:
• Year to date, the Dow is down 11.5%, the S&P 500 is down 16.1%, and the Nasdaq Composite is down 25.0%.
• It took only one month for Facebook, Amazon, Apple, Netflix and Google (the “Masters of the Universe”) to lose a combined $1.9 trillion! That’s about 25% of their combined
values.
• The Fed finally started to combat raging inflation. The Fed Funds rate was increased by 50 basis points to a target range of 0.75% to 1.0%. 10-Year Treasury yields accelerated
their already rapid ascent to the 3.0% range.
Almost two trillion dollars of value has evaporated from the five companies deemed to be indestructible for the past decade. So are these companies really worth $1.9 trillion less
than they were last month? I would argue they weren’t worth what they were worth in the first place. You can’t touch and feel and get any sort of use out of a share of stock. It’s a
piece of paper! Even the most pedestrian of stock market investors understood that the prices of financial assets were inflated due to the Fed keeping interest rates so low for so
long. Through a combination of financial leverage and herd mentality financial assets got bid up to irrational prices. As long as the Fed played along, the party kept going. But it
appears the Fed is calling it a night and sending everyone home (hungover).
Guess how much money I’ve lost over the past 30 days, or even year to date? Zero. Same goes for your investment in Cardone Capital. In fact, I’m up because of my Cardone Capital
distributions. Our investments are real, they have everyday utility, and they generate cash flow which is paid to you. And the best part is we are getting paid to wait because at some
point someone will pay me the price it takes for me to part with our cash flow, and it’s not small. Pension funds, insurance companies, private equity firms and public REITs all want
and need our cash flow.
In March we acquired 10X Miami River, a gorgeous, newly built apartment community located on the banks of the namesake river. Our debt financing was below 3.0% (I timed
that one right!). Debt quotes are now much higher. But I’m excited! We are entering a huge acquisition cycle as sellers must adjust their asking prices to compensate for increased
financing costs. Properties will be sold at prices below their fundamental value. Double digit rent growth will continue as demand for rental apartments outpaces supply. This should
not change in a higher rate environment or even a slower economy because the cost to finance a home purchase just went up with interest rates. Our portfolio is as strong as ever
with average occupancy at 97%. Many of our communities actually have waiting lists!
We have multiple deals in the pipeline and our next one is going to be a beauty. Let’s take advantage of the coming opportunities together! Both accredited and non-accredited
investors are welcome.
Cardone REIT I (CRI)
Thus far, CRI has co-purchased 10X Living at Las Olas Walk, 10X Living at Riverwalk, 10X Living at Sunrise, and 10X Living at Miami River with a Cardone accredited fund and Grant
Cardone. 10X Living at Las Olas Walk and 10X Living at Riverwalk are both newly built apartment communities located in the heart of Downtown Fort Lauderdale, both of which
include five-star amenities and luxury finishes. 10X Living at Sunrise is a value-add opportunity with 387-unit apartment units located in Sunrise, Florida across the street from
Sawgrass Mills Mall. 10X Living at Miami River is a newly built community located on the banks of the namesake river. CRI paid a 4.0% annualized cash on cash return on April 15,
2022 to investors of record as of March 15, 2022. See the attached detailed reports on each property.
Cardone Equity Funds
If you seek cash flow, appreciation, and tax advantages, go to cardonecapital.com or text 305-407-0276 to find out how you can be a part of these deals.
I remain the single-largest investor across our portfolio, and I believe in all our assets as much today as I did when we bought them.
Thank you for investing with us and your continued confidence.
2
Grant
# Units x Cash Flow + Time =Appreciation
3
10X
LAS OLAS WALK
Fort Lauderdale, FL
Asset Name: 10X Living at Las Olas Initial Loan: $174,000,000
Walk
Interest: 2.88% 3/31/22
Address: 106 & 200 S Federal Variable 3yrs
Highway, Fort Lauderdale, FL 33301
Payment: Interest only
Year Built: 2020
Maturity: 12/11/2024
# of Units: 456 First Extension Date: 12/11/2025
Second Extension Date: 12/11/2026
Avg. Unit Size: 916 Sq. Ft.
Date Purchased: 12/10/2021
Property Highlights
10X Living at Las Olas Walk is a 456-unit, 8-story, Class-AAA midrise located in the heart of Downtown
Fort Lauderdale. The Property features an unparalleled combination of top-of-the-market unit finishes
including top-floor units with large, garden terraces overlooking the Fort Lauderdale skyline. Las Olas
Walk puts residents at the center of excitement within dozens of restaurants, boutiques, and specialty
food shops, including a brand-new Publix Green Wise, steps away. The property features a mix of
thoughtfully designed apartment homes ranging from studio to three-bedroom apartments. 10X Living
at Las Olas Walk also offers Fort Lauderdale’s largest pool deck with a poolside ice machine, ice buckets,
and gelato machine. Other unique amenities that enhance residents’ living include a state-of-the-art
resident fitness center with a Peloton spin room, expansive outdoor spaces for grilling, a resident Co-
Working space, poolside indoor entertainment, and lounge seating with Downtown views.
Highlights of 2021:
• New leases and renewals commencing in Q1 2022 boasted positive net effective rent increases of
17% and 10%, respectively.
• Q1 2022 ended with average physical occupancy and leased occupancy of 97% and 98%,
respectively.
• The site collected over 97% of all rents billed in Q1 2022.
• Cash flow for Q1 2022 exceeds budget expectations by 12.5%.
• 10 X Living at Las Olas Walk will receive strategic improvements to enhance and sustain the
property’s pristine curb appeal and reputation.
OUTLOOK AND RECOMMENDATIONS
Cardone Capital LLC, the Manager of 10X Living at Las Olas, believes this property offers investors the
opportunity for long-term stability, future rent growth, and value appreciation which will contribute to
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10X
RIVERWALK
Fort Lauderdale, FL
Asset Name: 10X Living at Riverwalk Initial Loan: $103,500,000
Address: 4 West Las Olas Blvd, Fort Interest: 2.88% 3/31/2021
Lauderdale, FL 33301 Variable 3yrs
Year Built: 2020 Payment: Interest only
# of Units: 260 Maturity: 12/11/2024
First Extension Date: 12/11/2025
Avg. Unit Size: 904 Sq. Ft. Second Extension Date 12/11/2024
Date Purchased: 12/10/2021
Property Highlights
10X Living at Riverwalk is located in Downtown Fort Lauderdale at the connecting point of Las
Olas Boulevard Andrews Avenue. The property is thoughtfully designed with a blend of high-end
amenities, functional floor plans, and designer finishes. 10X Living at Riverwalk’s location is nestled
right on the river with Huizenga Plaza directly east allowing stunning park, river, and ocean views
for residents. These views complement the luxury unit finishes and property amenities that include a
25th-floor rooftop pool – the highest elevated full-sized multifamily pool in the City. Other notable and
considerately planned amenities include a sky club room, a billiards speakeasy lounge with piano, a
24-hour fitness center, yoga studio, dog park, business center, and pet spa. The site also has four retail
spaces and a commercial garage which assist with additional income.
Highlights of Q1 2022:
• New leases and renewals commencing in Q1 2022 boasted positive net effective rent
increases of 16% and 6%, respectively.
• Q1 2022 closed with average physical occupancy and leased occupancy of 96% and 99%,
respectively.
• We collected 98% of all rents billed in Q1 2022.
• 10X Living at Riverwalk will receive strategic improvements to enhance and sustain the
property’s pristine curb appeal and reputation.
OUTLOOK AND RECOMMENDATIONS
Cardone Capital LLC, the Manager of 10X Living at Riverwalk, believes this property offers
investors the opportunity for long-term stability, future rent growth, and value appreciation
which will contribute to the success of the Cardone Equity Funds.
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10X
SUNRISE
Fort Lauderdale, FL
Asset Name: 10X Living at Sunrise Initial Loan: $92,125,000
Address: 1640 NW 128th Drive, Interest: 2.85% 12/31/2021
Sunrise, FL 33323 Variable 3yrs
Year Built: 1996 Payment: Interest only
# of Units: 387 Maturity: 12/11/2024
Avg. Unit Size: 967 Sq. Ft.
Date Purchased: 12/10/2021
Property Highlights
10X Living at Sunrise is adjacent to the main entrance to the Sawgrass Mills Mall which holds
2.4 million square feet of space, 355 stores, 70 luxury outlets, and 16 restaurants. The attractive
architecture and well-designed floor plans offer market-leading 10-foot ceilings in all units. The
gated community features an expansive 8,774-square-foot clubhouse with a conference room,
business center, social room with TVs, and billiard table. Other amenities include a large outdoor
covered patio, expansive pool deck, and a 24-hour fitness center.
Highlights of Q1 2022:
• New leases and renewals commencing in Q1 2022 boosted positive net effective rent
increases of 10% and 11%, respectively.
• NOI for Q1 2022 exceeded budget expectations by 6%.
• Interior renovations have commenced, and most units will undergo renovations as they
become vacant.
• 10X Living at Sunrise will receive strategic improvements such as exterior landscaping
enhancements, amenity enhancements, rebranding, and exterior painting to help
reposition the asset in its submarket.
OUTLOOK AND RECOMMENDATIONS
Cardone Capital LLC, the Manager of 10X Living at Sunrise, believes this property offers investors
the opportunity for long-term stability, future rent growth, and value appreciation which will
contribute to the success of the Cardone Equity Funds.
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10X
MIAMI RIVER
Miami, FL
Asset Name: 10X Miami River Initial Loan: $104,000,000
Address: 1001 NW 7th Street Interest: 2.90% 03/31/22
Miami, FL 33136 Variable 3 yrs.
Year Built: 2020 Payment: Interest only
# of Units: 346 Maturity: 03/01/2025
Avg. Unit Size: 815 Sq. Ft.
Date Purchased: 3/24/2022
Property Highlights
10X Miami River is a new class A acquisition that occurred in March 2022 located directly on the
Miami River. This property has 346 units, 8 stories and with-top-of-the-market unit finishes. The
property is in a unique location within the Health District submarket that provides residents with
access to the second largest health district in the country with over 50,000 employees, 2,600
beds, and over 2 million square feet of research facilities. Occupants of the community enjoy open
floorplans with European style kitchens, premium quality countertops, stainless steel appliances,
floor to ceiling windows, and large, private balconies with unmatched views. Amenities also
include a private, one acre riverfront recreational park with a dog park and playground, a resort-
style pool with private pavilions and grilling stations, a state-of-the-art fitness center, a pet spa,
and a tech-hub with four private rentable offices.
Highlights of Q1 2022:
• Miami River closed the quarter at 95% occupied and 97% leased.
• The average effective rent at the end of the quarter was $2,303.
• Resident retention, revenue growth, and preventative maintenance are the focus for 2022.
• Financial information will be provided next quarter since the asset was acquired in late Q1
2022.
OUTLOOK AND RECOMMENDATIONS
Cardone Capital LLC, the Manager of 10X Miami River, believes this property offers investors
the opportunity for long-term stability, future rent growth, and value appreciation which will
contribute to the success of the Cardone Equity Funds.
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Call or Text (305) 407-0276
DISCLOSURE
Cardone Capital, LLC has prepared this report (this “Report”) for the sole benefit of the investors in Cardone REIT I LLC and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any securities. This Report must be kept
strictly confidential and may not be reproduced or redistributed in any format without the approval of the REIT.
In considering any performance data, one should bear in mind that past or targeted performance is not indicative of future results, and there can be no assurance that the Fund will achieve comparable results or that target returns will be met. Nothing contained herein should be deemed to be a prediction
for projection of future performance of the REIT.
Except where otherwise indicated herein, the information in this Report is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or
changes occurring after the date hereof.
Certain information contained in this Report constitutes “forward-looking statement,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or
other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of any the Fund may differ materially from those reflected or contemplated in such forward-looking statements. The information contained in this presentation
has been obtained from sources outside of Cardone Capital, LLC. While such information is believed to be reliable for the purposes used herein, neither Cardone Capital, LLC, nor any of its affiliates or partners, members or employees, assume any responsibility for the accuracy of such information. For
additional information, visit www.cardonecapital.com/disclosures.
