NEW YORK--(BUSINESS WIRE)--Cadre, the technology-enabled commercial real estate investing platform, today announced the sale of three multifamily assets in the Orlando, Houston, and Washington, DC metropolitan areas. Together, these sales represent more than $310 million in gross value and are expected to return more than $95 million in capital to investors and generate a ~17.4% Net IRR and 1.7x net multiple on invested capital2, demonstrating significant outperformance relative to underwriting. These realizations, when combined with Cadre’s four previous realizations and distributions from cash flowing assets, will result in the cumulative return of over $180 million to investors on the Cadre platform.
The sale of Cadre’s Solis at Winter Park property, a 596-unit multifamily asset in Orlando, set a record as the largest-ever successful syndication and sale of an individual asset raised and managed from an online platform1 and achieved a ~18% Net IRR and ~1.7x multiple on invested capital2. The sale of the Trails Portfolio, two multifamily properties with a combined 810 units in Houston, achieved a ~22% Net IRR and ~2.0x multiple on invested capital, while the Crestleigh Apartments, a 389-unit multifamily asset in the DC metro area, generated a ~10% Net IRR and ~1.6x net multiple on invested capital2. Together, these three exits show the resilience and continued strong performance of multifamily assets invested in by the Cadre team. These investments are based on rigorous analysis sourced from in-house data solutions with a continued emphasis on individual asset and market selection.
“From the beginning, our mission was to build a more transparent and liquid real estate investing model that brings institutional-quality assets within reach of a much broader array of investors,” said Ryan Williams, founder and CEO of Cadre. “Rewarding the trust our investors have placed in us with these strong returns is gratifying, and we’re just getting started. Following a long period of uncertainty in the commercial real estate market as a result of the global pandemic, these strong realizations set the stage for the growth and scaling of our model going forward. Most importantly, I am thrilled that we continue to help improve more individual’s financial futures with access to premier real estate opportunities. This mission is important now more than ever.”
This announcement comes following Harvard Management Company’s recent investment in Cadre, as well as in the Cadre Direct Access Fund, offering individuals the opportunity to invest alongside some of the world’s most prestigious institutions. The Cadre Direct Access Fund provides investors with a curated portfolio of commercial assets with lower minimums, low fees, better underwriting, and a potential for liquidity that has previously been unavailable to individual investors.
Cadre is a groundbreaking commercial real estate investment platform that offers institutional and individual investors the opportunity to access expertly curated real estate assets with lower minimums, low fees, and unprecedented potential for liquidity. Via its data-driven and transparent approach, Cadre opens participation in a historically opaque and illiquid asset class.
Along with its traditional investment offerings, Cadre also provides investors with the ability to pursue highly vetted commercial real estate opportunities and the opportunity to seek liquidity through its proprietary secondary market, a unique offering within the industry.
Since inception, Cadre has closed more than $3.5 billion in real estate transactions across 22 U.S. markets and delivered a 17.8% net average IRR across all completed property sales3, resulting in the return of more than $300 million of capital to Cadre investors to date. For additional information, please visit www.cadre.com.
1 Based on market research.
2 As of November 3, 2021. Calculations are generally made as of the date of the sale of the applicable asset and may include targeted proceeds that are to be distributed to the vehicles managed by Cadre (but which have not been realized by the vehicle as of the date of calculation). The use of a different methodology may result in a materially different return metric. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature.
3 IRR calculation represents an equity-weighted average annualized internal rate of return (IRR) for realized real estate investments of offerings by Cadre since the formation of our Investment Committee through to the date of calculation, after deduction of fees and expenses. Equity multiple represents the investment multiple on equity, which is calculated by dividing the aggregate realized proceeds for the applicable investment after deduction of fees and expenses. For recently realized investments, an estimate of proceeds to vehicles managed by Cadre may be used. The use of a different methodology may result in a materially different return metric. Our realized investments consist of: (1) Avida, 421-unit multifamily project, located in Salt Lake City UT, acquired August 2017, realized net IRR of 16.8% and realized net equity multiple of 1.4x, (2) Skyridge Apartments, a 364-unit multifamily asset in suburban Chicago, realized net IRR of 15.0% and net equity multiple of 1.4x, (3) Sugarloaf trails, a 268-unit multifamily asset in Suburban Atlanta, realized net IRR of 27.4% and net equity multiple of 1.8x, (4) Astoria Portfolio, a 143-unit multifamily asset in Queens, NYC with a realized net IRR of 15.1% and a net equity multiple of 1.4x, (5) Crestleigh Apartments, a 389-unit multifamily asset in Laurel, MD with an updated target net IRR of 10.2% and a net equity multiple of 1.6x, (6) Trails Portfolio, two multifamily properties totaling 810 units in Houston, TX with an updated target net IRR of 22.4% and a net equity multiple of 2.0x, (7) Solis at Winter Park, a 596-unit multifamily asset Winter Park, FL with an updated target net IRR of 18.0% and a net equity multiple of 1.7x.
Not Advice: This communication is not to be construed as investment, tax, or legal advice in relation to the relevant subject matter; investors must seek their own legal or other professional advice.
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 investments 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.
This article is dated 11/3/2021 and describes the Cadre Direct Access Fund (the “Fund” or “Direct Access Fund”), a real estate investment fund seeking to create a highly-diversified portfolio of multifamily, industrial, office, and hotel properties across high potential markets across the United States. Interests in the Fund are only suitable for ‘Accredited Investors’ (as defined in applicable SEC regulations) who are familiar with and willing to accept the high risk associated with private investments. Investing in private placements requires high-risk tolerance, low-liquidity concerns and long-term commitments. Investors must carefully consider their investment objectives along with the risks, charges, expenses and other factors of any investment product prior to investing. Any targeted returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance. All opportunities are subject to prior placement and withdrawal, change, cancellation or modification, all without notice. Please refer to the investment opportunity and memorandum for additional information and disclaimers.