BECOME AN INVESTOR

Why Invest in Real Estate?

Real estate has long been a cornerstone of wealth generation and preservation. However, the asset class is difficult to source, operationally intensive, and too often burdened by high fees and misalignment. Which means investors of all types lack efficient access to quality opportunities.

1Return Potential

Alongside the security of tangible asset ownership, commercial real estate has historically produced attractive returns relative to other fixed income and real estate products.

Cummulative Return Since 2000
Real Estate 430%
S&P 500 133%
US Bonds 112%
Investment period: December 2000 - December 2016. Real estate data is from FTSE NAREIT US Real Estate Equity REITs and represents total return data, with full reinvestment of dividends. S&P Total Return data is from CBOE. US Bond index is from the Barclays US Aggregate Bond Index. All data is as of December 2016. Real estate return data should not be used to estimate the return of Cadre investments.

2Tax Efficiency

We live in an after-tax world and should view our investments through a tax conscious lens. With Cadre, enjoy the favorable tax characteristics of real estate ownership.

Tax Drag
Real Estate 24% Tax
Non-RE 34% Tax
After-Tax Annualized Return
Real Estate 11% IRR
Non-RE 9% IRR
Illustrative tax scenarios assume a hypothetical pre-tax net return of 16% IRR. Tax calculations are not tax advice and assume: 37.6% marginal tax rate, 22-year blended depreciation schedule for real estate investment and no depreciation for non-real estate investment. Actual rates and depreciation scenarios may vary. Percentages rounded to the nearest whole number.

3Diversification

Real estate offers valuable portfolio diversification, but typically means writing big checks for single assets or funds. With Cadre, gain access without having to make overly concentrated commitments.

4Tangible Asset Ownership

As a hard asset, real estate can provide both cash flow and intrinsic value. With Cadre, benefit from fractional ownership in individual properties.


Why Invest with Cadre?

We are a technology-enabled real estate investment platform with an emphasis on differentiated sourcing, diligence enhanced by data, increased transparency, and investor-friendly terms.

1Experienced Team

We’re a team of professionals from well established investment firms including Blackstone, Baupost, Goldman Sachs, Dune, and GEM Realty Capital.

Our investment committee is led by Michael Fascitelli, former CEO of Vornado Realty Trust and head of Goldman Sachs’ real estate investment banking division.

$45bn
Collective Transaction Experience
300+
Operating Partner Relationships

2Better Economics

Our fee load is up to 40% lower than a traditional fund construct, with no “double layer” of profit sharing.

Our investors benefit from favorable tax characteristics driven by property-level depreciation as shield against current income.

After-Tax Annualized Return
Real Estate 15.9% IRR
Non-RE 13.4% IRR
Cadre Investor Net Return” and “Fund Investor Net Return” based on a hypothetical 16.0% gross IRR over a 5-year hold period. “Fund Investor Net Return” assumes 1.5% annual fee on committed equity and a 20% promote over 8% preferred return with 50% catch-up. “Cadre Investor Net Return” assumes 1% transaction fee on cost and 1.5% annual fee on invested equity. Numbers may not add due to rounding.

3Differentiated Technology

Our data science team and investment in technology enhance the traditional sourcing, diligence, and asset management processes.

We leverage technology to scale our efforts and lower the costs associated with investing, allowing us to operate with lower fees than our traditional peers.

4True Alignment

We’re a SEC-registered investment advisor and take our fiduciary responsibility seriously.

Cadre employees invest in each transaction alongside our investors. We assume an active asset management role and provide detailed investment-level transparency.


How Does Cadre Compare?

We fundamentally improve on traditional real estate investing models. We are a steward of our investors’ capital and are committed to offering more transparent, efficient ownership in high-quality commercial real estate opportunities.

CADRE Real Estate Funds Public REITs Private REITs Direct Deals Crowd-funding Crowdfunding
Investment Expertise img img img img img img
Lower Fees img img img img img img
Transparency img img img img img img
Diversification img img img img img img
Efficient, Flexible Committment img img img img img img

FAQs

What is the minimum investment?

We typically call for a minimum investment of $50,000 per transaction. Our investors range from qualified individuals through larger groups and institutions committing more sizeable amounts. Investors also have the ability to invest at lower per-deal minimums through a portfolio commitment. Please contact us at ir@cadre.com if you are interested in learning more.

When and how will I receive distributions?

Distributions are typically made quarterly from available operating cash flow and are automatically deposited into investors’ bank accounts. Size and timing of distributions depend on the business plan and performance of each investment. Investors are notified of upcoming distributions and are able to track their distribution history through our platform.

What if I want to diversify my investment across multiple transactions?

Cadre offers a Managed Account option that provides diversified allocation across transactions within a defined set of parameters. Please contact us at ir@cadre.com if you are interested in learning more.

How are Cadre’s investments structured?

Investments are typically structured as limited partnerships. For each investment, we enter into a joint venture with an operating partner, who invests alongside us in the transaction and is responsible for day-to-day management of the property. We assume responsibility for oversight, reporting, and major decisions on behalf of our investors.

What size transactions does Cadre pursue?

We typically pursue transactions requiring a minimum equity investment of $15mm. We utilize prudent leverage at the property level, in an amount and form that we believe is accretive to each opportunity.

How frequently are Cadre transactions available for investment?

We focus on quality over quantity. Our senior team invests in every transaction we pursue, which instills both patience and alignment. We are constantly reviewing opportunities but only act on the small subset we find compelling. As such, only a small number of investments may be available at any given time.

What is Cadre’s typical hold period?

Our investment horizon varies by opportunity but a typical business plan assumes a 3-7 year hold period.


Contact Us