Cadre Direct Access Fund | Cadre
Cadre Direct Access Fund seeks to deliver
Value Add
Over time, the real estate industry has developed conventions for discussing and categorizing investment objectives which reflect the relative risk and return investors can expect. These four categories – Core, Core Plus, Value Add, and Opportunistic – span the risk spectrum from low risk (Core) to high risk (Opportunistic). Learn More about our investment objectives. returns with downside protection.
Our focus is on quality over quantity. We work with our experienced operating partners to carefully select each fund investment to add to a diverse mix of institutional-quality investments across risk and return profiles, asset classes, and markets. To build a balanced portfolio, we will pursue investments in the core plus, value add, and opportunistic strategies with a primary focus on Value Add returns for the fund.
Focus on Institutional-quality assets
The Fund targets established properties that range in total value from $50M to $200M.
Designed to generate consistent annual cash flow for investors
We typically look for properties with stable in-place tenants that are already generating cash flows for investors.
Establish downside protection by identifying dislocations
To reduce risk, we seek to purchase assets at a discount to their replacement cost by looking for dislocations in the market, most prominently, from COVID-19.
Enhance value with active management
Once we select an investment, we’ll actively manage it through any renovation projects and operational improvements to enhance value for you.
We designed the Cadre Direct Access Fund to balance risk and return through careful portfolio construction.
Careful portfolio construction means two things: prudent property type allocation and insightful market selection. Here is our approach to both:
Property Type Allocation
COVID-19 has disparately impacted property operations and supply/demand fundamentals across asset classes. As a result, asset values and availability of financing across asset classes have been significantly impacted.
Given this outlook, the fund will target 50% of its investments in stable multifamily assets, intended to generate attractive risk-adjusted returns and downside protection, and will opportunistically pursue 50% office, industrial, and hotel investments that have a higher potential to generate upside as they recover from COVID-19 disruption.
Market Selection
Cadre Direct Access Fund will focus on investing in fifteen top growth markets that we selected by combining insights from our investment team and predictive analytics from our proprietary data platform. We call these markets the Cadre 15.
We tuned our models to identify markets with attractive return profiles and relative affordability. Amidst COVID-19, we have seen a flight to high-quality secondary markets, where there has historically been diverse drivers of demand growth and ample supply across asset types.
We have already secured several promising assets for Fund investors.
Our team has been hard at work to execute our investment thesis and we have secured six assets to include in the Cadre Direct Access Fund. As a Cadre member, you can review detailed analysis on all of the assets on our platform. Here’s a preview of one of those assets:
Key West Crossings
Building
284k sf life science asset
Location
Rockville, MD
Life Science Tailwinds, Accelerated
Ranging from pharmaceuticals to biotech, life science is a resilient sector benefiting from US demographic trends and heightened national attention on the country’s drug and medical R&D capabilities.
Rare Class A Life Science Product at a Compelling Price
Sourced off-market and acquired at a 45% discount to replacement cost, Key West is one of the few Class A office buildings with the infrastructure needed for life science tenants.
DNA Alley – Thriving Life Science Cluster
DNA Alley serves as home to leading institutions such as the Department of Health, FDA, NIH, and National Cancer Institute. The submarket benefits from limited supply and remains well-occupied at ~96% as of Q2 2020.
Become a member and our team will help you build a better real estate portfolio.
1. Sign up
Click Get Started to answer a few questions about your goals and create a Cadre Account.
~2 minutes
Time to create an account
2. Invest
Review detailed information about our real estate offerings and select an investment that is right for you.
$25,000
Investment Minimum
3. Earn
Track the performance of your portfolio. If applicable to your investments, you may earn quarterly cash flows, benefit from asset sales, and optionally seek to sell on our Secondary Market.
Annual Returns
Targeted underwritten returns may be included in investment memos
Frequently Asked Questions
- Am I eligible to invest?
Our platform is available for accredited investors. You do not need a formal license or certificate to qualify as an accredited investor. To be an accredited investor, one of the following must be true: (1) you have (and expect to continue to have) an annual income of greater than $200k for the past two years, (2) you have (and expect to continue to have) joint annual income with your spouse of greater than $300k for the past two years, (3) you have a net worth (excluding your primary residence) of greater than $1M, or (4) you hold one or more of financial services licenses Series 7, Series 65, or Series 82 in good standing. If any of these are true, click “Get Started” to become a Cadre member in ~2 minutes.
- What fees do you charge?
Our fees are dependent upon how much you choose to invest in the Cadre Direct Access Fund. If you are investing $100,000, for example, we charge a one-time commitment fee of 3.0%, an annual administration fee of 0.50%, and an annual asset management fee of 1.5%. Unlike other investment companies, we do not charge our investors a Fund-level performance fee. You should consult the Fund’s investment memorandum for details on the fees charged.
- How does investing work?
Once you create an account, you will be able to review our investment opportunities. Once you’re ready to invest, our platform will prompt you with any questions necessary to complete your investment documents online. Then, we will notify you on how to fund your investments through our online platform. As an investor, you will have access to your portfolio details and you will receive quarterly updates on how your investments are performing. If it’s relevant to your investments, you will receive distribution income on a quarterly basis. Finally, if you feel the need for liquidity, our Secondary Market provides the opportunity to list eligible investments to seek a buyer (liquidity not guaranteed).
- What are your investment minimums?
You can invest in Cadre real estate with an investment of $25,000 or more.
- How are my investments protected?
We act as the decision-maker of the partnership on your behalf, handling the day-to-day operations with our partners. Your investment is held in the form of a limited partnership interest in a Delaware limited partnership. If something were to happen to Cadre (the company), you would still maintain your ownership of the real estate partnership.