Cadre

Cadre is a real estate investment platform, connecting accredited investors with operators in commercial real estate. The platform offers multifamily, office, and hotel opportunities across the U.S., generating a 19% realized net IRR and 1.5x return multiple since inception. These opportunities are meant to offer significant diversification benefits relative to equities, bonds, and REITs given their low volatility and higher risk-adjusted returns. Cadre is backed by a “who’s who” of marquee investment firms and angel investors, such as Mark Cuban, Peter Thiel, Andreesen Horowitz, and General Catalyst. Additionally, the Firm is led by an experienced investment team, bringing real estate transaction experience from institutions such as Goldman Sachs, Blackstone, and Morgan Stanley.

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Relative to other leaders in the commercial real estate space such as EquityMultiple and CrowdStreet, Cadre differentiates itself through its secondary market offerings. Typically, principal investment dollars in commercial real estate are locked up for a decade or more despite offering consistent cash flows. Secondary offerings provide sellers with earlier liquidity, giving the option of cashing out as early as a year after making an initial investment. On the flip side, these offerings provide investors with opportunities that are closer to maturity in order to limit risk or diversify one’s portfolio on the basis of maturity.

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Among features most frequently mentioned by both investors and users, the Firm’s cutting-edge technology appears to be most compelling. Cadre’s user interface is easy to use and offers predictive analytics to guide the decision-making process. The platform also offers investors the option of automating investments, submitting a set allocation and letting the site choose investments that fit one’s risk-return profile. The minimum investment amount for these automatic investments ($10,000) is significantly lower than the minimum for manual investments ($50,000). For accredited investors interested in flexibility and advanced analytics, Cadre is a suitable option.

Pros

• Secondary market offerings provide flexibility to investors, who have the option to liquidate positions after a year.
• The site offers an intuitive user interface along with a predictive analytics and automation feature, making management of investments on the platform easy.
• Cadre’s opportunities tend to provide consistent cash flows that have less correlation to the public markets than publicly-listed REITs or equities.

Cons

• The Firm’s 1% transaction fee on cost and 1.5% annual fee on invested equity is steep relative to competitors. EquityMultiple only charges a fee to the sponsor, while Fundrise charges a 0.85% annual management fee on Direct offerings and a 0.15% investment advisory fee.

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