Introducing the Cadre Direct Access Fund
Advancing Cadre’s mission to expand individual investor access to institutional-quality commercial real estate with lower minimums, lower fees, the potential for liquidity -- and unparalleled access to a diversified portfolio of institutional-quality commercial real estate assets
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Cadre is taking the next step in our journey to lower the barriers to investing in institutional-quality real estate -- one of the most impenetrable asset classes -- with the introduction of the Cadre Direct Access Fund, a curated portfolio of commercial properties with lower minimums, lower fees[1], world-class underwriting, and the potential for liquidity. With a $50,000 minimum and a target of at least 15 properties, once fully deployed the fund will offer commercial real estate diversification to qualified investors and Advisors who invest on behalf of their clients.
“Commercial real estate has always been a highly sought-after asset class, but it is also one of the hardest to break into,” said Cadre’s co-founder and CEO, Ryan Williams. “Cadre has been on a journey to tear down these barriers, and the Direct Access Fund advances that mission in an exciting new way.”
Cadre’s Direct Access Fund is also available at a time of tremendous complexity in the commercial real estate market, with investors looking to identify compelling opportunities during and emerging from the Covid-19 pandemic. The fund will acquire properties across a highly curated and specific set of markets and industries that Cadre’s investment team has identified as some of the most likely to provide strong risk-adjusted returns going forward. The portfolio will focus on the “Cadre 15” (link), the regions that Cadre’s team — backed by data science and on-the-ground insights — believes are poised for some of the strongest growth[2]. The fund will also focus on what we believe to be stronger-performing asset classes, especially multifamily residential, as well as specific emerging industries such as life sciences and select hospitality.
Cadre President Allen Smith added that the fund’s strategy is built on Cadre’s past success. “Cadre has delivered more than 18% net IRR on four complete property sales and as a whole, we’re pleased to have achieved strong portfolio performance and returns through the pandemic, with rent collections averaging 95%+ across Cadre’s portfolio in Q2-Q4 2020[3],” said Smith. “The Direct Access Fund will identify what we believe will be rock-solid opportunities that are poised to deliver strong returns while maintaining a very compelling risk profile.”
Also reflecting 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 attempt to generate alpha for our investors while strengthening the communities it invests in by partnering with local minority depository institutions (MDIs) and maintaining reasonably priced housing in these communities. Through its commitment to allocate no less than 10% of its investment capital to underrepresented minority-owned operating partners, depositing up to 5% of its cash holdings with MDIs, and partnering with MDIs to submit bids and participate in the financing of transactions on the Cadre platform, Cadre will build stronger, more diverse communities while aiming to deliver compelling returns for investors.
“Our goal is for people to be able to leverage our platform to drive greater economic equality and opportunity,” said Ryan Williams. “We’ve moved past the stage of putting ESG off to the side in its own category. Profits and purpose can and should live side-by-side.”
Accredited investors can begin investing on the Cadre platform today (link).
- Based on a comparison of the upfront, management and performance, fee rates charged by the manager, advisors and their affiliates (“Cadre”) to Cadre investments to rates of those fees charged by the manager, advisors and sale agents of selected competing real estate investment vehicles. Assumes that the Cadre investments 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 investment requirements. Comparison does not include fee breaks, fees that are not received by Cadre 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. ↩︎
- The Cadre 15 is a list of metropolitan statistical areas periodically identified by Cadre as commercial real estate markets with strong potential for risk-adjusted returns. The Cadre 15 is developed through a combination of quantitative and qualitative analysis, including predictive analytics and on-the-ground intel. Quantitative analysis involves forecasting two-year growth projections for each market and asset class based on various variables known to drive market appreciation including but not limited to population growth, employment, rent growth, new construction, and occupancy. Qualitative analysis involves a review of quantitative data by our industry experts. There is no guarantee that an investment in a Cadre 15 market will be successful. ↩︎
- 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. ↩︎
Disclaimer
Educational Communication
Not AdviceThe views expressed above are presented only for educational and informational purposes and are subject to change in the future. No specific securities or services are being promoted or offered herein.
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.
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.
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.
Not a Public Exchange
The Cadre Secondary Market is NOT a stock exchange or public securities exchange, there is no guarantee of liquidity and no guarantee that the Cadre Secondary Market will continue to operate or remain available to investors.
Opportunity Zones Disclosure
Any discussion regarding “Opportunity Zones” — including the viability of recycling proceeds from a sale or buyout — is based on advice received regarding the interpretation of provisions of the Tax Cut and Jobs Act of 2017 (the “Jobs Act”) and relevant guidances, including, among other things, two sets of proposed regulations and the final regulations issued by the IRS and Treasury Department in December of 2019. A number of unanswered questions still exist and various uncertainties remain as to the interpretation of the Jobs Act and the rules related to Opportunity Zones investments. We cannot predict what impact, if any, additional guidance, including future legislation, administrative rulings, or court decisions will have and there is risk that any investment marketed as an Opportunity Zone investment will not qualify for, and investors will not realize the benefits they expect from, an Opportunity Zone investment. We also cannot guarantee any specific benefit or outcome of any investment made in reliance upon the above.
Cadre makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Any actual transactions described herein are for illustrative purposes only and, unless otherwise stated in the presentation, are presented as of underwriting and may not be indicative of actual performance. Transactions presented may have been selected based on a number of factors such as asset type, geography, or transaction date, among others. Certain information presented or relied upon in this presentation may have been obtained from third-party sources believed to be reliable, however, we do not guarantee the accuracy, completeness or fairness of the information presented.
No U.S. or foreign securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through us.
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