NEW YORK--(BUSINESS WIRE)--Cadre, the technology-enabled commercial real estate investing platform, today announced a significant investment by the John D. and Catherine T. MacArthur Foundation in the Cadre Direct Access Fund. This investment reflects continued momentum for Cadre’s Direct Access Fund as a compelling investment for institutions, foundations, and individual investors alike. MacArthur joins the ranks of institutions such as Harvard Management Company in investing in the fund.
The Cadre Direct Access Fund offers institutional investors, foundations, and individuals the opportunity to invest alongside one another in a curated portfolio of commercial assets. The Direct Access Fund simultaneously offers investors lower minimums, low fees, world-class underwriting, and liquidity opportunities unusual for the commercial real estate market. Moreover, the fund has also been constructed to drive positive societal impact through its investments, investing in and partnering with local underrepresented minority operating partners and minority depository institutions (MDIs) across its portfolio.
“We are thrilled to welcome the MacArthur Foundation – an extraordinary foundation with a proven track records – as an investor in our Direct Access Fund,” said Ryan Williams, founder and CEO of Cadre. “It’s rewarding to see our fund grow with interest from partners who are committed to expanding access to institutional wealth and intent on promoting equitable finance. As we move forward after a highly successful year, we are grateful to work alongside those who are committed to doing well and doing good.”
“As a mission driven organization, the MacArthur Foundation looks for opportunities to make investments from its investment portfolio that align with its mission and values while seeking returns that meet our objectives,” said Susan Manske, Vice President and Chief Investment Officer of the MacArthur Foundation. “We are excited about the opportunity to partner with Cadre which has shown great skill at curating commercial real estate investment opportunities while seeking to level the playing field for investors, encourage local economic development, and promote diversity across the industry.”
This announcement comes following Cadre’s recent successful exits from three multifamily assets, returning more than $95 million in capital to investors with a net Internal Rate of Return above 17 percent and a 1.7x net multiple on invested capital.1 Recently, Harvard Management Company announced its own investment in Cadre and the Cadre Direct Access Fund.
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 sales2, 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 As of January 25, 2022. 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.
2 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 which together aggregate to a net IRR of 17.8% and net equity multiple of 1.6x consist of: (1) Avida, a 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.
The foregoing is not intended as, and should not be construed as, a statement of an investor’s experience with, or any investor’s endorsement of, Cadre or its affiliates. This article is dated 01/25/2022 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.