Cadre launches fund targeting small real estate investors
$400M fund will bring in investors for as little as $5K
Real estate investing firm Cadre is making good on its previous promise to start a real estate fund targeting opportunities brought on by the coronavirus pandemic.
The company is launching a new $400 million fund that’s meant to make it easier for individual investors, financial advisors and institutions to invest in real estate, according to Forbes.
“I believe we are entering a period that will potentially be a once in a lifetime opportunity to invest in attractively-priced properties,” Ryan Williams, the company’s founder and CEO, told the publication.
Investors in Cadre’s Direct Access Fund must be qualified, but if they meet the conditions, they can buy in with minimum per-property checks of as low as $5,000. Since its 2014 founding, the company has distributed more than $168 million to its investors.
Williams told the publication that the firm is also upping its commitment to working with minority-owned real estate firms, with 10 percent of Cadre’s portfolio dedicated to those operators. He aims to eventually get that number up to 20 percent. He also aims to have between 5 and 10 percent of Cadre’s cash held at black-owned banks.
Despite an early dip in revenue, and subsequent layoffs, the pandemic hasn’t had a huge impact on Cadre’s $3 billion real estate portfolio, which is largely made up of multifamily properties but also includes office and life sciences assets. For the multifamily properties it manages, rent collections stayed strong, averaging north of 96 percent between April and December 2020.
[Forbes] — Sasha Jones