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Cadre Opportunity Zones

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

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.
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How Does it Work?
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.
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Defer
taxes on the original capital gain until the end of 2026.
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Reduce
the amount of deferred taxes owed by up to 15%.
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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.
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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
There are over 8,700 census tracts designated as Qualified Opportunity Zones. We believe our data-driven investing approach allows us to seek neighborhoods that are capital-deprived today, but where investments can help drive future growth.
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Seattle
Portland
San Francisco
Los Angeles
Inland Empire
Phoenix
Houston
Atlanta
Philadelphia
Miami
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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


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Join the Cadre Opportunity Zones Program

Cadre has received significant interest in the program and has opened several Opportunity Zone deals for investment. Join our platform to evaluate available transactions and begin investing.
Become an Investor
Or contact us directly at +1 (646) 494-7233 or investments@cadre.com.