Multifamily Housing Best Real Estate Investment Sector, Cadre Says

Multifamily housing presents the best opportunity for investors who want a stake in real estate, according to Cadre, a technology-driven real estate investment platform.

The upswing in the multifamily sector is one of the trends impacting the real estate market now, Alyssa Chong Anderson, director of business operations and growth at Cadre, said in an interview yesterday.

The pandemic created some of the demand for multifamily housing as people moved out of inner city areas, Anderson said. But the demand also is being fed by the fact that many young people are getting priced out of the single-family home market.

Cadre is an investment platform for multifamily, office, industrial and hotel properties, with a Direct Access Fund that enables high-net-worth investors to hold assets in real estate for a minimum investment of $50,000, or to enter contracts on separate real estate deals. The platform provides a secondary market for buying and selling property that adds liquidity to the real estate market.

“Real estate is an important part of a balanced portfolio,” Anderson said. But care has to be taken in all sectors, including the multi-family housing sector.

According to the Cadre report on second quarter activity for this year, “Asset selection is essential in the multi-family market. Going forward, great multi-family properties in a thriving location are likely to perform well, but a mediocre property just a few miles away might face a very different reality,” the report said. Half of the Cadre Direct Access Fund is made up of multifamily assets, Anderson said.

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Another trend in the real estate sector is a possible uptick in industrial property, she said. E-commerce continues to grow, requiring warehouse space, which could create favorable investment opportunities in the sector, she said.

At the same time, the sector is marked by uncertainty because it is difficult to determine the macro-trends that may affect industrials in the future, the Cadre report said.

Investors are concerned about the potential for inflation along with the possibility that Covid variants could dampen the economy as a whole, Cadre said. Which is part of the reason the commercial real estate market faces conflicting pressures.

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