The Crowd Fund Real Estate Investor

Kushner Brothers-Backed Cadre Looks to Cash in on Opportunity Zones

The Real Deal: David Jeans

Cadre, the real estate crowdfunding platform partially owned by Jared and Josh Kushner, is leaping headfirst into the Opportunity Zone craze.

Cadre’s CEO Ryan Williams tweeted about the launch on Friday morning, framing it as an opportunity for investors to deploy funds into “under-served markets throughout the U.S.”

Cadre was also a major sponsor of an Opportunity Zones conference in New York City on Thursday, though it didn’t announce what cities it would target.

The program, enacted as part of the Trump administration’s tax overhaul, provides tax deferments and tax breaks for developers who invest in projects in designated low-income neighborhoods across the country. Those who make qualified investments in an opportunity zone can defer capital-gains taxes from an unrelated investment, and any gains on an investment in the zone are tax exempt as long as they’re held for a decade. Treasury Secretary Steven Mnuchin believes the program will spur $100 billion in capital investment across the country.

Though the size of Cadre’s Opportunity Zone funds was not disclosed, the firm will join the ranks of established real estate players who are placing sizable bets on the program. In the last two months, Skybridge Capital, RXR Realty, Normandy Real Estate Partners, YoungWoo & Associates, Toby Moskovits and Somerset Partners have all announced plans for funds at $100 million or more.

In October, The Real Deal profiled Williams, who left Blackstone Group and launched Cadre in 2014 alongside the Kushner brothers. Cadre raised $65 million in a Series C funding round last year for what was a reported $800 million valuation. It also has a $250 million partnership with Goldman Sachs, which pledged to allow its wealth management clients use the Cadre platform.

Senior White House adviser Jared Kushner, who, according to a federal disclosure form owns a Cadre stake valued at between $5 million and $25 million, has also not fully divested from his family’s real estate business. WNYC reported that his family firm Kushner Companies has at least 10 properties in Opportunity Zones. Cadre says neither Kushner brother is involved in the decision-making at the firm.

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