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Executive Summary:

  • Cadre developed proprietary technology to help us make private real estate more accessible, transparent and affordable to a greater number of investors.
  • These platform innovations supplement our investment team’s expertise and help us to deliver the potential for groundbreaking liquidity.
  • Tech-enabled efficiencies also allow us to reduce our fees vs. institutional competitors.

Innovative technology drives Cadre’s mission to help make private real estate more accessible, transparent and affordable to a greater number of investors. Our proprietary tools and systems supplement our team’s investment expertise and streamline the investor experience from end-to-end. Cadre’s tech-enabled efficiencies also conserve resources, which means greater data transparency and the ability to lower costs for premium real estate investment opportunities.

Read on to learn how Cadre leverages technology in every aspect of our business.

Increasing Real Estate Access

Private real estate investing requires access to information that is not typically available to all interested investors. Specifically, the due diligence process for vetting specific investment opportunities can be overly opaque. There has also been a high financial bar to engaging with this asset class. Cadre is on a mission to change all of that.

At Cadre, we integrate technology into every aspect of our business, creating a more efficient and transparent way for investors to gain access to commercial real estate.

Market Selection

Cadre’s in-house data scientists and investment experts work together to select the markets we believe are likely to outperform over the next few years. Our commercial real estate (CRE) investment professionals have decades of experience at well-respected institutional firms and long investment track records. Their buy recommendations are confirmed by our data scientists, who use analytics to capture insights into market trends through two proprietary models:

Pricing Model

  • Tracks market appreciation across various geographical areas and asset classes
  • Based on actual sales information
  • Indicates the likelihood that a property will or will not increase in value

Growth Model

  • Forecasts potential asset growth over a two-year horizon
  • Takes into consideration 40,000 variables and 3 million data points (including population growth, employment trends, rent growth, new construction and occupancy)
  • Uses machine learning to disentangle the many drivers of market appreciation.

From these models, we’ve identified 15 real estate markets in the United States with a high potential for growth: The Cadre 15.

Source: The Cadre 15, as of July 2021

We update data on our market selections quarterly and update the market selections themselves on an annual basis.

Seamlessly Acquiring Assets

The underwriting process helps Cadre decide if an asset's asking price matches its appraisal value. That information is used to determine whether or not a deal would be a good one for our investors. To help our acquisitions professionals underwrite deals more efficiently, Cadre developed our own deal management software. Unlike the traditional method of acquiring assets, Cadre’s entire underwriting process is digitized.

Our systems automatically ingest data from a variety of paid, public and proprietary sources on a daily basis. This provides us with a detailed view of each asset we own, as well as a comprehensive view of the market. Paired with our pipeline management software, the Cadre team can access over 400 million macro and fundamental data points the moment a deal is ingested into the system.

Cadre’s software utilizes cutting-edge algorithms to synthesize this data into specific asset insights. Unlike traditional real estate asset managers, we store this granular data down to the zip-code level. All of our information is made available through efficient pipeline management tools, which also provide seamless access to all previously underwritten transactions.

The use of proprietary technology helps us acquire assets faster and smarter:

  • We can make investment decisions quickly, helping us to compete for assets
  • We can underwrite more deals per person, which cuts down on human capital
  • Reliable data is easily accessible, leading to more informed decisions
  • Our property “scores” are objective, helping to remove individual bias from the process

Optimizing Asset Management

Once we have acquired an asset, Cadre’s team begins the process of managing it for our investors. To do so, we developed automated workflow software that helps optimize all of our assets under management.

Our technology helps us track in near real-time the performance of each property against its business plan. Automating this part of the management process allows our on-the-ground operators to more efficiently detail and validate property-level data, while reducing the chances of input and analytical error. Additionally, such in-depth views of our assets’ performance allow us to adapt to changing market trends at a faster pace than traditional asset managers.

Cadre’s technology helps us save team resources and improve investor reporting:

Significant Time Savings

  • Automation saves about 12 hours per deal each reporting period
  • API integrations reduce input error by eliminating the need for manual data submissions

Enhanced Reporting

  • Leases and rent rolls are updated daily (general practice is to update monthly)
  • Portfolio reporting and analytics are updated daily (general practice is to update quarterly)
  • Automated monthly data checks help ensure accuracy

Scaling Fund Operations

Cadre’s technology not only helps us select, acquire and manage assets, it also helps us scale all aspects of fund operations: capital calls, distributions, regulatory reporting, and tax preparation. Cadre investors have instant access to the investment management process through our platform, so they can make informed investment decisions.

Efficiencies Support Savings on Institutional Quality Assets


Cadre’s technological advances and continual enhancements allow us to automate and streamline core business functions. This, in turn, can help to reduce our overhead for the provision and management of institutional-quality assets. These savings can be passed on to our investors.

Our automation efforts since July 2020 reflect the following improvements in workflow efficiency:

  • ～4 hours saved per distribution
  • ～3 hours saved per deal fees calculations
  • ～3 hours saved per report generated
  • ～30+ min saved per secondary / transfer transaction
  • ～50+ different workflow automation services working in tandem to increase overall efficiency.

Conclusion

Founded at the crossroads of experience and innovation, Cadre developed technology to streamline the ways in which we interact with our investors, operate our business and invest in real estate. We offer up-to-date data on our deals through a robust investment platform at a relatively low entry point. These innovations create efficiencies for our team and more value for our investors in premium real estate. Our goal is to level the playing field for investors. The development and continual enhancement of in-house systems and processes allows us to advance toward this goal through technology.

About Cadre

Cadre’s mission is to help make real estate more accessible, transparent and affordable to a greater number of investors, while strengthening the communities they invest in. Our financial technology supplements our Investments team’s expertise and helps us to deliver the potential for groundbreaking liquidity.

Investment opportunities may be accessed through direct participation (Deal-by-Deal), via investment in the Cadre Direct Access Fund, and in the Cadre Secondary Market, which can match interested buyers with sellers who may be exiting their positions in commercial real estate.

If you are interested in investing with Cadre, please contact us at investments@cadre.com


Disclaimer

Educational Communication

The 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.