What is Cadre?
Founded in 2014, Cadre is a real estate crowdfunding company that invests substantial resources to identify the very best commercial real estate projects it can find and make them available to accredited investors. The company has created proprietary technology aimed at better serving investors by targeting to achieve outsized risk-adjusted returns while providing a transparent, seamless, and engaging user experience. It’s a higher-end platform with a minimum investment of $50,000.
This high minimum investment may mean Cadre isn't a good fit -- or even attainable -- for many people. Moreover, the average Cadre real estate project will take five or more years to complete, so it's also not a good choice for investors looking for quick deals. However, Cadre offers something else that's a differentiator. Several times per year, Cadre opens up a secondary market, allowing investors the ability to offer all or part of prior investments for sale to other investors.
But for those with the means and a longer time horizon, there is a lot to like. Cadre is one of the few crowdfunding platforms that:
- Invests alongside investors in every deal.
- Generates most of its revenue from recurring management fees versus one-time transaction fees.
- Has incentives tied to deals outperforming their target levels.
Cadre also has a solid record with opportunity zone deals.
Put it all together, and Cadre is one of the most investor-aligned platforms we have seen.
Summary: Is Cadre a good investment?
If Cadre's minimum investment of $50,000 is within your reach, and you're looking for deals that are generally structured to take five or more years before the full return of capital, Cadre is one of the top platforms to consider.
Since its formation in 2015, Cadre has acquired more than 38 assets across 20 U.S. markets. At the time of this review, it has completed four fully-realized multifamily investments. All four deals earned investors a profit and outperformed their original targets (underwritten net IRRs ranged between 11% and 15.1% while realized net IRRs were between 15% and 27.4%), according to Cadre.
Based on Cadre's intensive due diligence, incentive structure, and the personal stake held by employees and executives in every deal, we expect Cadre to continue to prove a good place to find high-quality real estate investments.