NEW YORK--(BUSINESS WIRE)--Cadre, a leading technology-driven real estate investment platform, has launched the next evolution in its investment offering, the Cadre Direct Access Fund. Building on Cadre’s distinctive combination of institutional experience, proven performance and groundbreaking innovation, the Cadre Direct Access Fund provides a wider pool of individual investors with unparalleled access to a diversified portfolio of institutional-quality commercial real estate assets — with several advantages over comparable investment opportunities, including traditional private equity funds.
Cadre has delivered a net internal rate of return (IRR) of more than 18%2 across fully realized assets to date, with strong portfolio performance and returns through the pandemic, as evident in Cadre’s rent collections averaging 95%+ across its portfolio as of year-end 2020.
"As we emerge from the pandemic, the commercial real estate market is presenting incredibly compelling investment opportunities, yet identifying investments in this environment remains complex," said Ryan Williams, Cadre’s co-founder and CEO. "Commercial real estate is one of the most impenetrable asset classes. With the launch of the Cadre Direct Access Fund, we are now expanding access to these compelling investments. The Cadre Direct Access Fund breaks down historical barriers to access, allowing more individuals to invest in a commercial real estate portfolio designed to be stable and defensive, alongside a world-class investments team."
While the Cadre Direct Access Fund offers many of the sought-after benefits of real estate private equity investments, it provides access to institutional real estate assets, but with lower fees, lower minimum investments, and unprecedented ability for investors to seek liquidity via Cadre’s proprietary Secondary Market. At the heart of the Fund is a strategy that’s focused on commercial real estate sectors which the Cadre investment team views as well-positioned to outperform in a post-pandemic economy. The fund will provide investors access to a diversified portfolio of investments across the multifamily, office, industrial, and hospitality sectors. The Fund further reflects Cadre’s highly-nuanced view of the current market, focusing on regions and industries we believe are poised to grow in the years ahead, while avoiding those that we believe will be held back as the economy recovers from the pandemic. The Fund is designed to provide a strong alternative to the volatility of other asset classes.
Also responsive to the current state of the world, the Cadre Direct Access Fund has been constructed to drive positive social impact through its investments. Cadre will simultaneously seek to generate alpha for our investors while strengthening the communities it invests in by partnering with local underrepresented minority operating partners across its portfolio. Additionally, Cadre will be partnering with minority depository institutions (MDIs) and maintaining reasonably priced housing in these communities throughout its portfolio. Through its stated goals of allocating at least 10% of its investment capital to underrepresented minority operating partners, depositing at least 5% of its cash holdings with MDIs, and partnering with MDIs to participate in the financing of transactions on the Cadre platform, the Cadre Direct Access Fund will build stronger, more diverse communities while delivering compelling returns for investors.
About Cadre
Cadre is a next generation technology-driven real estate investment platform that provides qualified individuals and institutions access to fully vetted commercial real estate opportunities. Cadre has also built a groundbreaking secondary market for commercial real estate enabling investors to have the potential to seek liquidity. Cadre combines its institutional experience with differentiated technology to empower investors through direct access, low fees, and greater transparency.
Since inception, Cadre has closed more than $3 billion in real estate transactions across 16 markets and delivered more than 18% net IRR on four complete property sales, resulting in the return of more than $168 million3 of capital to Cadre investors to date.
For additional information, please visit https://cadre.com/
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1 Based on a comparison of the upfront, management and performance fee rates charged by the manager, advisors and their affiliates (collectively, the "Cadre Entities") to investments in the Cadre Direct Access Fund to rates of those fees charged by the manager, advisors and sale agents of selected competing real estate investment vehicles. Assumes that the Cadre Direct Access Fund and competing vehicles achieve the same assumed gross return (14.6%) over equal hold periods - these assumptions are for illustrative purposes only and no conclusion of any type or kind should be drawn regarding the future performance of investments offered or managed by Cadre based upon these assumptions. Selected competing vehicles are non-exchange traded and have minimum investment requirements that are the same as or similar to the Cadre Direct Access Fund’s requirements. Comparison does not include fee breaks, fees that are not received by the Cadre Entities or the direct sponsors (or their sale agents) of the competing vehicles (including operator fees and promotes) nor does it include any expenses other than performance, management and selling fees.
2 Our track record for realized investments can be reviewed here. See that page for additional detail and disclaimers. IRR calculation represents an equity-weighted average annualized internal rate of return ("IRR") for realized real estate investments of offerings by Cadre since the formation of our Investment Committee through to the date of calculation, after deduction of fees and expenses. For recently realized investments, an estimate of proceeds to vehicles managed by Cadre may be used. The use of a different methodology may result in a materially different IRR. Please also see cadre.com for additional disclaimers.
3 Gross Distributions to Investors refers to the sum of any income distributions, sale gains, and return of capital without deduction for any investor-specific withholding or preferred equity payments. As of 1/27/21.
Not an Offer: This communication is not an offer of securities or invitation to make an investment. Nothing contained herein should be relied upon as a guarantee, assurance, or representation. Any targeted returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance. Please refer to the Cadre Direct Access Fund offering material and memorandum for additional information and disclaimers, including regarding fees and costs.
Performance Not Guaranteed: Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance.
Risk of Loss: All securities involve a high degree of risk and may result in partial or total loss of your investment.
Not Advice: This communication is not to be construed as investment, tax or legal advice in relation to the relevant subject matter; investors must seek their own legal or other professional advice.
Liquidity Not Guaranteed: Investments offered by Cadre are illiquid and there is never any guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved.
© Cadre 2021. Broker-dealer services in connection with an investment are offered by RealCadre LLC, a broker/dealer registered with FINRA and a member of SIPC.
