Commercial real estate start-up teams up with Goldman Sachs
Goldman Sachs’ investment clients will now have access to an online platform linking them up with commercial real estate opportunities thanks to a new tie-up between the bank and start-up Cadre.
Some US$250m of investments from Goldman Sachs’ private clients has already been secured by Cadre, which offers those interested in diversifying their portfolios through real estate investments, an online platform through which to do so. The platform is a digital tool that investors can use to access commercial real estate investments that come fully vetted.
Goldman has invested in the start-up and its CEO and founder Ryan Williams says Cadre has hundreds of millions of dollars more in the pipeline from the bank’s private wealth clients in addition to the funds already officially announced.
Cadre says that its transparent approach to fees and the ease with which clients can access the investments are the reasons it is proving a popular alternative to REITs and private equity funds. The service provides private individuals access to commercial real estate deals direct from the real estate ‘operators’. This means that they can invest in individual properties rather than having to put their cash in a fund with others.
Each investment currently averages around US$100,000 and the popularity of the tools lies in the fact that users can invest quickly and cheaply when compared to other routes to real estate investment.
Eric Lane, global co-head of Goldman Sachs’ Investment Management Division, stated: “Our goal is to ensure we provide our clients with innovative and diverse investment opportunities to help them drive returns and protect capital. Our ongoing partnership with Cadre underscores this commitment.”
The interface that users are presented with has won the platform much admiration due to its attractive design. It is set out like an online store and the vital statistics for each of the commercial properties are presented clearly. The properties price tags range from around US$50m to US$250m. Williams says that alongside the wealthy individuals that use the platform, institutional investors are also becoming increasingly keen to use the tool. The individuals using the platform have to meet earnings requirements of at least US$200,000 a year or have net wealth of at least US$1m.
Williams explained that the tie-in with Goldman Sachs is doing wonders for his business. “It’s exciting because in many ways I see our vision being realised even faster than I had anticipated.” Goldman Sach’s involvement is being seen as further evidence that large investment banks are realising the value of working alongside young, technology-driven start-ups that open up alternative investing to a wider market and make doing deals much less complex, expensive and elitist.
Ryan Williams founded the start-up alongside brothers Joshua and Jared Kushner, the latter of whom is the son-in-law on President Donald Trump.