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Investors Add Commercial Real Estate to Retirement Portfolios After Volatile Year for Traditional Strategies

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.

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. 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%.

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.

“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.”