NEW YORK CITY—Globe.St.com has confirmed that Kushner brothers Jared and Josh have launched Cadre, a real estate investment vehicle that aims to connect institutional investors with opportunities in gateway markets, as first reported in the Real Deal. A representative of the new initiative declined to comment.
Through the platform, investors can dive into specific deals rather than putting their money into funds or REITs, where they're unable cherry-pick transactions.
Some of New York real estate's biggest players, including former Vornado Realty Trust CEO Michael Fascitelli, Island Capital Group's Andrew Farkas, and SL Green Realty, the city's largest commercial landlord, are backing the startup. The platform already has raised $18.3 million in its Series A round, led by Thrive Capital, a venture capital firm founded by Joshua Kushner, and General Catalyst Partners, a venture firm whose investments include Snapchat and Airbnb.
The founders began working on the venture in the fall of 2014, and have secured a $250 million backstop from a large family office. Though Cadre has been in “stealth beta mode,” co-founder and CEO Ryan Williams says investors—including family offices and sovereign funds—already have closed on $50 million worth of deals through it. Revenues will come through transaction fees and other fees.
Williams, an alumnus of Goldman Sachs' technology and media group and the Blackstone Group's real estate private equity division, is overseeing day-to-day operations. Andrew Borovsky, who was a director of product at mobile payments company Square, is leading product development. The Kushners serve as strategic advisors. Jared is the CEO of Kushner Cos., a New York City landlord and the co-developer of Dumbo Heights in Brooklyn. Joshua's investments through Thrive include Warby Parker, Instagram, and several real estate startups.
To start, investments made through the platform likely will be of the proven, income-producing variety—such as Class A office towers in Manhattan as opposed to assets such as Dumbo Heights—a person familiar with the company tells the Real Deal.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
