NEW YORK--(BUSINESS WIRE)--Cadre, a leading technology-driven real estate investment manager, announced the launch of an individual retirement account (IRA) solution, allowing investors to allocate their IRA funds into commercial real estate (CRE) through the Cadre platform. The real estate firm expects the new investment option will continue to expand access to CRE – an often tax-advantaged asset class with longer investment periods and attractive risk-adjusted returns relative to equities.1
Cadre’s new product provides a solution for IRA investors who experienced a historically challenging year in 2022. According to the Investment Company Institute, U.S. retirement market assets fell more than 18% and lost ~$7.1 trillion between Q1 and Q3 2022.2 IRAs accounted for the majority of retirement assets over this period, holding over $11 trillion assets with the majority allocated to equity funds. Over the same time period, the S&P 500 index (representing average equity performance) fell more than 13% while the NCREIF Property Index (representing average private commercial real estate performance) rose 9.13%.3,4
CRE typically features more stability and longer holding periods than traditional IRA investments like equities, making it a fit for many investors hoping to harvest returns for retirement. During recent market drawdowns like the Great Financial Crisis and Dot-Com recession, equities lost an average of ~36% in value. Private real estate, meanwhile, averaged a 31.86% gain over the same periods.5,6
“I founded Cadre to provide more individuals with a tax-efficient tool that institutions and ultra high-net-worth investors have traditionally used to build wealth,” said Ryan Williams, Founder and Executive Chairman of Cadre. “By equipping investors with the ability to invest their IRA dollars, we aim to expand access to diversified, robust retirement portfolios – and by extension, generational wealth.”
Cadre’s IRA solution follows the launch of the Cadre Horizon Fund in 2022, now allowing retirement-focused investors to allocate IRA dollars into the Fund using Cadre’s online platform. The Cadre Horizon Fund can be held with a number of leading IRA custodians, including The Entrust Group, Equity Trust Company, and Millennium Trust Company. Interested investors can work with Cadre’s Investor Relations team to navigate the allocation process and check Cadre’s compatibility with other preferred IRA custodians.
“Expanding our platform to accept IRA dollars is another milestone in Cadre’s long history of meeting investor demands and needs,” said Jared Kaplan, Cadre CEO. “We are grateful to our many existing partners that have helped make such a timely innovation possible.”
Cadre is a commercial real estate investment manager that invests alongside individuals and institutions on our tech-driven platform. As a fiduciary, we have a distinct responsibility to investors. Our highly disciplined process features innovations in market selection, asset management, and rigorous due diligence. We are committed to expanding access to this essential asset class, which has long contributed to legacy wealth.
Since inception, Cadre has earned investors 27.6% realized net IRR in $4 billion of real estate transactions across the U.S.7, 8 To learn more about Cadre and view the full track record and important disclosures, visit cadre.com/track-record.
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 Source: Bloomberg and NCREIF. Historical refers to a 20-year time period, beginning December 31, 1999 and ending December 31, 2019. Commercial real estate is represented by the NCREIF Open-End Diversified Core (ODCE) Index, an equal weighted, time weighted index representing a blended portfolio of institutional-quality real estate funds reported net of management and advisory fees. The S&P 500 Index represents an unmanaged index of the 500 largest stocks (in terms of market value), weighted by market capitalization and considered representative of the broader stock market. Indices are unmanaged and investors cannot invest directly in an index. Unless otherwise noted, performance of indices does not account for any fees, commissions or other expenses that would be incurred.
2 Source: Investment Company Institute, Q3 Quarterly Retirement Market Data for the time period 1/1/2022 - 9/30/2022.
3 Source: YCharts, S&P 500 Index Returns for the time period 1/1/2022 - 9/30/2022.
4 Source: NCREIF Property Index total returns for all property types for the time period 1/1/2022 - 9/30/2022.
5 Source: YCharts, S&P 500 Index Returns for the time periods 1/1/2001 - 3/31/2003 and 10/1/2007 - 3/31/2009.
6 Source: NAREIT, Private Real Estate Index Returns for the time periods 1/1/2001 - 3/31/2003 and 10/1/2007 - 3/31/2009.
7 Data as of December 31, 2022. IRR calculation represents an equity-weighted average annualized internal rate of return (IRR) for all single-asset realized real estate investments of offerings firm-wide by Cadre since the formation of our Investment Committee on March 31, 2016, through to the date of calculation, after deduction of fees and expenses. Calculations assume no fee breaks or concessions were applied to any underlying offering. 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. Realized and updated target returns are inclusive of all of Cadre’s completed dispositions. Realized returns are subject to change following final distributions on sold assets. 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 calculation of net return figures for each investment pertains to single-asset investment vehicles only. The calculation of net return figures for each investment in a multi-investment fund vehicle is difficult, if not impossible, to prepare with accuracy due to the estimation of fund-wide expenses and other variable fees applicable to each investment that are necessary for such calculations. Returns reflect net performance and are not audited. Other vehicles, such as the Cadre Direct Access Fund LP and parallel vehicles, are also participants in these investments.
8 Gross Distributions to Investors refers to the sum of any income distributions, sale gains, and return of capital without deduction for any investor-specific withholding or preferred equity payments. Updated on September 30, 2022.