Cadre plans to launch a commercial real estate fund to target investment opportunities brought on by the coronavirus crisis.
The new fund would allow the startup to deploy money quicker at a time when many commercial real estate firms are under pressure to shore up their finances and build liquidity, according to Bloomberg.
It would be the first of its kind for Cadre, which has so far-billed itself as a way for individual investors to pour money into large commercial real estate deals.
Cadre will turn to family firms and accredited retail investors, looking to initially raise several hundred million dollars, according to the report. Cadre plans to pitch clients on the proprietary algorithm it says it uses to underwrite deals.
Cadre was reportedly exploring such a fund before the pandemic hit. Other firms were a step ahead. In December, funds focusing on opportunistic and distressed real estate in already had about $142 billion in dry powder in their coffers.
Real estate investment trusts have already sold off mortgage portfolios and sold equity stakes to hedge funds to raise cash.
It’s been a year of change already for Cadre. In January the firm hired former Four Seasons CEO Allen Smith as president.
Co-founder Jared Kushner, President Trump’s son-in-law, sold his stake in the company back to Cadre a month later. Outside parties had long raised concerns that his work for the Trump administration created a conflict of interest. SoftBank reportedly pulled out of a potential investment in the firm after Kushner refused to divest from Cadre. [Bloomberg] — Dennis Lynch