NEW YORK--(BUSINESS WIRE)--Cadre, the leading technology-driven real estate investment platform, today announced the successful sale of two multifamily assets in Sacramento, California and Houston, Texas that delivered significant outperformance relative to initial expectations. These sales are expected to result in nearly doubling investors' money and represent the eighth and ninth full property sales since Cadre’s founding. These sales also reflect Founder and CEO Ryan Williams’ vision of leveling the investing playing field for both individuals and institutions, building on Cadre’s successful track record of partnering with experienced operators and sponsors in fast-growing markets.
Following the sale of three assets in 2021, and with these additional successful exits, Cadre has exited nine investments to generate an average net IRR of over 18%1 to investors and in total has returned approximately $300 million in aggregate capital2 to investors to date. The firm has now eclipsed more than $4.5 billion in total transaction volume and taken a tremendous step forward in improving hundreds more individuals' financial futures by generating outsized returns from quality real estate investments.
The sale of Cadre’s Lincoln Place property, a 240-unit multifamily asset in Sacramento, is expected to achieve ~22% net IRR and 1.9x net multiple on invested capital upon distribution to investors. Partnering with 29th Street Capital, Cadre successfully secured Lincoln Place at a meaningful discount to the asset’s replacement cost in 2018 in one of the country’s fastest growing multifamily markets. After executing on its underwritten business plan to renovate ~80% of the asset’s units, Cadre achieved strong rent growth and increased occupancy over the investment lifecycle. Ultimately, the success of Cadre’s business plan execution resulted in meaningfully higher cash flows and yields relative to underwriting, and given the growth in the Sacramento market, Cadre was able to sell the asset at a meaningful premium to its basis generating outsized returns for investors on the platform.
In addition, Cadre recently completed the successful sale of its Lodge at Copperfield property, a 330-unit multifamily asset in Houston, Texas. Cadre is expected to achieve a ~22% net IRR and ~1.9x net multiple on invested capital upon distribution to investors. Cadre worked with a repeat partner, Knightvest Capital to acquire the asset in 2018 and reposition it by renovating and upgrading approximately half of the units. As a result of the successful execution of its business plan, the asset achieved strong return on costs, compounded by significant rent growth, raised resale value, and a highly profitable sale relative to underwriting.
“We continue to prove our commitment to our mission of delivering greater financial prosperity to more individuals through our most recent successful property sales. We are proud to be able to level the investing playing field and excited to reward our investors by sharing the impressively strong returns these sales generate,” said Ryan Williams, Founder and CEO. “By leveraging data science and our team’s on the ground experience, we have shown that our novel approach to investing does indeed drive alpha to investors. We have long held the conviction that successful investments stem from identifying the most promising markets, leveraging strong local partnerships, and responsibly contributing to communities we invest in. Our most recent sales of Lincoln Place and Copperfield demonstrate why we’re still convinced.”
Cadre is a groundbreaking technology-driven commercial real estate investment platform that offers both 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 Cadre’s founding, Cadre has closed more than $4.5 billion in real estate transactions across 24 U.S. markets. Cadre has exited nine investments with an 18%+ targeted realized average net IRR1 and in total has returned approximately $300 million of capital2 to Cadre investors to date. For additional information, please visit www.cadre.com.
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.
1 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) Astoria Portfolio, a 143-unit multifamily asset in Queens, NYC, acquired January 2015, with a realized net IRR of 15.1% and a net equity multiple of 1.4x, (2) Sugarloaf trails, a 268-unit multifamily asset in Suburban Atlanta, acquired April 2017, realized net IRR of 27.4% and net equity multiple of 1.8x, (3) Skyridge Apartments, a 364-unit multifamily asset in suburban Chicago, acquired November 2016, with a realized net IRR of 15.0% and net equity multiple of 1.4x, (4) 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, (5) Crestleigh Apartments, a 389-unit multifamily asset in Laurel, MD, acquired September 2016, 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, acquired January 2018, 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, acquired, September 2018, with an updated target net IRR of 18.1% and a net equity multiple of 1.7x, (8) Lodge at Copperfield, a 330-unit multifamily asset in Houston, TX, acquired November 2018, with a updated target net IRR of 21.8% and a net equity multiple of 1.9x and (9) Lincoln Place, a multifamily asset in Sacramento, CA, acquired July 2018, with a updated target net IRR of 22.0% and a net equity multiple of 1.9x.
2 Aggregate capital to investors refers to the sum of any income distributions, sales gains, and return of capital without deduction for any investor specific withholding or contribution interest.