The third edition of "Lining Up Data in ArcGIS: a guide to map projections" was released by Esri Press on June 28 2018. The new edition includes a chapter on applying and transforming vertical coordinate systems, as well as the opportunity to download the data used to create the screenshots for the exercises outlined in the book. Our original intention was to include information about how to create custom projection files in Pro to align CAD data, but the tools used in ArcMap to calculate parameters and create the custom projections is not available yet in Pro. That functionality will be available in future releases.
As Dan Patterson mentioned, there is the option of georeferencing CAD data, both in ArcMap, and in Pro, using a World File. The issue I have with georeferencing is that with 2 control points, the data's shape is being changed - lengths of lines are changing, as are the angles between the lines, so if the CAD file represents survey-grade data, the georeferenced data no longer represents the survey measures acquired in the field.
On the other hand, creating a custom projection file simply moves the data to a new location on the screen, without making any changes to the shape of the data. Once that data has the custom projection defined, and is imported into a geodatabase, the feature dataset can then be projected to a standard coordinate system like StatePlane, and added to an existing parcel fabric for example, preserving the accuracy of the original survey.