Cadre Launches Direct Access Fund, Delivering Diversified, Institutional-Quality Commercial Real Estate to More Investors
NEW YORK–(BUSINESS WIRE) – Cadre, a leading technology-driven real estate investment platform, has launched the next evolution of 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 offers a broader pool of individual investors unprecedented access to a diversified portfolio of institutional-grade commercial real estate – with several advantages over comparable investment options, including traditional ones Private equity funds.
Cadre has so far achieved a net internal rate of return (IRR) greater than 18% 2 on fully realized assets, with strong portfolio performance and pandemic returns. This can be seen in Cadre’s rental income averaging 95% + across the portfolio from year-end 2020.
“As we emerge from the pandemic, the commercial real estate market offers incredibly compelling investment opportunities, but identifying investments in this environment remains complex,” said Ryan Williams, Cadre 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 assets. The Cadre Direct Access Fund removes historical barriers to entry and enables more individuals to invest in a commercial real estate portfolio that, along with a first-class investment team is stable and defensive. ”
While the Cadre Direct Access Fund offers many of the coveted benefits of private equity real estate investing, it does provide access to institutional real estate assets but with lower fees, lower minimum investments, and an unprecedented opportunity for investors to seek liquidity through Cadre’s Second Market. At the heart of the fund is a strategy that focuses on the commercial real estate sectors and which the Cadre investment team believes is well positioned to outperform a post-pandemic economy. The fund offers investors access to a diversified portfolio of investments in the multi-family, office, industrial and hospitality sectors. The Fund also reflects Cadre’s nuanced view of the current market, focusing on regions and industries that we believe will grow in the years to come while avoiding those that we believe will be withheld if the economy is recovering from the pandemic. The fund aims to provide a strong alternative to the volatility of other asset classes.
The Cadre Direct Access Fund is state-of-the-art and has been designed to have a positive social impact through its investments. Cadre will simultaneously seek to generate alpha for our investors while empowering the communities in which it invests by working with local under-represented minority operating partners in its portfolio. In addition, Cadre will partner with Minority Depository Institutions (MDIs) and maintain affordable housing in these communities across its portfolio. Through its stated goals of allocating at least 10% of its investment capital to under-represented minority operating partners, depositing at least 5% of its cash holdings with MDIs, and partnering with MDIs to help fund transactions on the Cadre platform, which will become the Cadre Direct Access Fund Build stronger, more diverse communities while generating compelling returns for investors.
Cadre is a next-generation technology-driven real estate investment platform that provides qualified individuals and institutions with access to fully validated commercial real estate opportunities. Cadre has also built a groundbreaking commercial real estate secondary market that allows investors to look for liquidity. Cadre combines its institutional experience with differentiated technology to empower investors through direct access, low fees and greater transparency.
Since its inception, Cadre has completed more than $ 3 billion in real estate transactions in 16 markets and has achieved a net IRR of more than 18% on four full property sales, resulting in a return on investment of more than $ 168 million3 in Cadre Investors led.
Further information is available at https://cadre.com/.
1 Based on a comparison of the up-front, management and performance fee rates charged by the Manager, Consultants and their affiliates (collectively, the Cadre Entities) for investing in the Cadre Direct Access Fund with those as of Managers charged fees. Advisors and sales agents of selected competing real estate investment vehicles. It is assumed that the Cadre Direct Access Fund and competing vehicles will achieve the same assumed gross return (14.6%) over the same holding periods. These assumptions are for illustrative purposes only and no conclusions should be drawn with regard to the future performance of the investments offered or managed by Cadre based on these assumptions. Selected competing vehicles are not publicly traded and have minimum investment requirements that are or are in line with the requirements of the Cadre Direct Access Fund. The settlement does not include fee relief, fees not received by the Cadre Entities or the direct sponsors (or their sales agents) of the competing vehicles (including operator fees and promotions), nor any costs other than performance, management and sales fees.
2 Our track record for realized investments can be viewed here. On this page you will find further details and disclaimers. The IRR calculation represents an equity-weighted average annualized internal rate of return (“IRR”) for realized real estate investments of offers from Cadre since the formation of our investment committee up to the calculation date after deduction of fees and expenses. For recently realized investments an estimate of the proceeds for from Cadre managed vehicles are used. Using a different methodology can result in a significantly different IRR. Further disclaimers can also be found on cadre.com.
3 Gross distributions to investors refer to the sum of all income distributions, sales profits and capital returns without deduction for investor-specific withholding taxes or preferred equity payments. As of 01/27/21.
No Offer: This announcement is not an offer of securities or an invitation to invest. Nothing in this document should be relied on as a guarantee, assurance, or assurance. Targeted returns, expected returns, or predictions of probability are not guaranteed and may not reflect actual future performance. For more information and disclaimers, including fees and charges, see the Cadre Direct Access Fund, which has material and memorandum.
Performance Not Guaranteed: Past performance is no guarantee of future results. Historical returns, expected returns, or projections of probability are not guaranteed and may not reflect actual future performance.
Risk of Loss: All securities carry a high degree of risk and could result in the loss of all or part of your investment.
No Advice: This release should not be construed as investment, tax, or legal advice in relation to the subject matter. Investors must seek their own legal or other professional advice.
Liquidity not guaranteed: The investments offered by Cadre are illiquid and there is no guarantee that you will be able to exit your investments in the secondary market or at what price an exit (if any) will be obtained.
© Cadre 2021. Broker-dealer services related to an investment are offered by RealCadre LLC, a FINRA registered broker / dealer and member of SIPC.