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Cadre Opportunity Zones

Tax-Advantaged, Social-Impact Real Estate Investing
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Significant Tax Benefits
Opportunity Zone investments have the potential to generate more than double the after-tax profits compared to a standard taxable portfolio.
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Data-Driven Diversification
Build a diversified portfolio of qualifying O-Zone assets in markets where we have identified outsized growth potential through our data-driven process. We enable investors to avoid the risk associated with single asset, market or developer strategies.
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Experienced Team and High-Quality Network
The Cadre team brings $50 billion of collective transaction experience and deep relationships with an extensive network of leading developers, providing us access to differentiated opportunities across the country.

Opportunity Zones Program Overview
Introduced by the Tax Cut and Jobs Act of 2017, “Opportunity Zones” (“O-Zones”) are census tracts designated by federal and state governments based on their lower income demographics. The Program was created to incentivize investment within these communities by providing 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.
1
Defer
Taxes on capital gains until
December 31, 2026.
2
Reduce
Amount of deferred taxes owed
by up to 15%.
3
Eliminate
Tax on capital gains from the Cadre
Opportunity Fund if held for 10 years.
After-Tax Profits Calculator
Assumes a 10 year hold period
Cadre Opportunity Fund
$0
Standard Taxable Portfolio
$0
$0
Potential additional returns
over 10 years
Assumes long-term capital gains tax of 23.8% (federal capital gains tax of 20% and net investment income tax of 3.8%).
Assumes no state income tax for both the standard portfolio and the Opportunity Fund Investment.
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The Cadre Approach
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.
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8,700
Total Number of O-Zones
11%
Share of the U.S. Population
~ 41%
Lower Incomes vs. Non-Ozones
~ 38%
Lower Homeownership Rate
vs. Non-Ozones
Sources: U.S. Census, STI Popstats

Identifying Attractive Markets through Data
By assessing population and income potential at the census tract level, we have targeted a smaller subset of O-Zones that we believe demonstrate outsized growth prospects.
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Seattle
Portland
San Francisco
Los Angeles
Inland Empire
Phoenix
Houston
Atlanta
Philadelphia
Miami
zoom
Illustrative Los Angeles
Qualified Opportunity Zones
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
Non O-Zones
Other O-Zones
Cadre O-Zones
Sources: U.S. Census, STI Popstats

The Cadre Advantage: A Differentiated Approach
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.
Unique Single-Asset Fund Structure
Since inception, we’ve focused exclusively on structuring single-asset funds, which we believe is the optimal structure for Opportunity Zones investing. Leading law firms have noted that “a traditional [commingled] fund structure with multiple properties is not a straightforward fit for the OZ Program”1 and that instead, fund managers “may wish to create a separate fund for each property.”2

1 Source: Duval & Stachenfeld LLP, October 25, 2018

2 Source: Stroock & Stroock & Lavan LLP, August 28, 2018


Join the Cadre Opportunity Zones Program
We have received significant interest in the Program, and have begun accepting commitments alongside expressions of interest. We expect to make our first investment opportunities available January 2019.
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Have additional questions?
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Or contact us directly at +1 (646) 494-7233 or ir@cadre.com.