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Opportunity Zones

Reduce taxes on your capital gains by investing in a new class of real estate opportunities.

Investor's questions

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What are Opportunity Zones?

A program created by the Tax Cuts and Jobs Act of 2017 to incentivize investment in underserved communities. The program offers material tax benefits for investments made into designated Opportunity Zones.

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How do I know if I qualify to invest?

You can invest using long or short term capital gains from any source including the sale of stocks, bonds, or property. These gains must be re-invested within 6 months of realization.1

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What are the benefits of investing?

You can defer, reduce and even eliminate your capital gains taxes. The result is an ability to potentially double your after-tax profits compared to a typical portfolio.2

After-Tax Returns Calculator

Assumes an 8% annual rate of return over a 10-year hold

Traditional Portfolio
Cadre Opportunity Zones
Assumes long-term capital gains tax of 23.8% and short-term capital gains tax of 40.8% (includes highest federal gains rates of 20% and 37% respectively, with a 3.8% net investment income tax that applies to taxpayers in certain circumstances). If you sell an asset you have held for one year or less, any profit you make is considered a short-term capital gain and is taxed at ordinary income rates. Assumes no state income tax for both the standard portfolio and the Opportunity Fund Investment. Please note that the After-Tax Returns Calculator is only a hypothetical illustration of mathematical principles, and is not intended to predict or project the performance of an investment or investment strategy. See Key Assumptions for this Calculator and Important Disclosures.

How does It Work?

The Opportunity Zones program was created to incentivize investment within lower income communities by offering material tax benefits to U.S. investors who re-invest any form of capital gains into Opportunity Funds. To qualify, investments must target “substantial improvement”, which generally means development or extensive repositioning of a property.

Defer taxes on the original capital gain until the end of 2026.

Reduce the amount of deferred taxes owed by up to 15%.

Eliminate tax on capital gains from the investment if held for 10 years.

Why choose Cadre Opportunity Zones?

The economic disparity between O-Zones and other areas highlights the need for thoughtful market selection. We’ve ranked the long-term growth potential of each O-Zone by combining data-driven spotlighting tools with on-the-ground developer relationships and market evaluations.
8,700
Total Number of Opportunity Zones
11%
Share of the U.S. Population
-41%
Lower Incomes vs. Non-Opportunity Zones
-38%
Lower Homeownership Rate vs. Non-Opportunity Zones
opportunity zones map
Seattle
Portland
San Francisco
Los Angeles
Inland Empire
Phoenix
Houston
Atlanta
Philadelphia
Miami
4.1%
2.1%
4.5%
5-Year Population Growth
8.4%
4.8%
9.5%
10-Year Population Growth
10.4%
10.8%
13.2%
5-Year Overall Household Income Growth
11.0%
10.0%
12.7%
5-Year Earning Age Cohort Household Income Growth
5-Year Population Growth
10-Year Population Growth
5-Year Overall Household Income Growth
5-Year Earning Age Cohort Household Income Growth
Non Opportunity Zones
Other Opportunity Zones
Cadre Target Opportunity Zones
Sources: U.S. Census, STI Popstats. Cadre Target Opportunity Zones represent Opportunity Zones that Cadre’s proprietary data-driven analysis has identified as above average and projected to grow faster than average non-Opportunity Zone Census tracts over time. Cadre uses target zones to focus its investment selection efforts but, each investment selection is unique and actual investments made by Cadre may be in areas that are not Cadre Target Opportunity Zones.

The Cadre Advantage: A Differentiated Approach

We feel we are uniquely positioned to offer a differentiated Opportunity Zone Program because the optimal O-Zone investment strategy and deal structure align with our existing investment approach.

Efficient Diversification

Access a series of O-Zone opportunities with data-driven diversification across select markets and alongside experienced operating partners. We seek to avoid the risks associated with single asset, market, or developer strategies.

Experienced Investment Team

While the Program's tax benefits are highly attractive, investments must be grounded in the merits of the real estate. The Cadre team brings over $50 billion of collective transaction experience at top tier investment firms, including ~$10bn of development experience across the U.S. We co-invest in each opportunity alongside our investors and actively manage all of our assets.

High-Quality Operator and Developer Network

We have developed a pipeline of actionable opportunities within our target O-Zone markets, driven by our network of over 300 local operating partners. These relationships provide us with a unique sourcing advantage across O-Zones, as well as local market development and repositioning expertise.

Disciplined, Single-Asset Fund Structure

Since inception, we’ve focused exclusively on structuring single-asset funds, which we believe is the optimal structure for gaining exposure to Opportunity Zones. This structure has also encouraged discipline without a broad, multi-asset fund mandate. We have reviewed over 300 Opportunity Zone transactions to date and committed to a select few.

Have Additional Questions?

Important Disclosures

Opportunity Zones Disclosure: This discussion regarding “Opportunity Zones” is based on 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 issued by the IRS and Treasury Department. 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. As such, we cannot predict what impact, if any, additional guidance, including future legislation, administrative rulings or court decisions will have on such unanswered questions and uncertainties 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.

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.

1 Where the gain is earned through a partnership or joint venture that does not roll the gain into an O-Fund, an individual partner can choose to start their 180 day clock at the end of the tax year of that partnership. For more information, please refer to the Cadre FAQ.

2 Potentially double your after-tax profits compared to a typical portfolio refers to the calculated after-tax outcomes for a traditional portfolio and qualified opportunity fund portfolio using the After-Tax Returns Calculator above. Not a prediction or projection of investment performance.