Cadre, the technology-driven real estate investment manager, today announced the successful sale of an office portfolio in Colorado Springs. The Colorado office portfolio, comprised of four office parks (Interquest, Patriot Park, Aerotek Commerce Park, and Peak Innovation), was sold in October 2022 for an undisclosed amount. Cadre’s investment in the portfolio generated a 28.1% realized net return for its investors, highlighting the value discerning investment managers can deliver through institutional quality deals.
While Cadre believes the overall office sector is in the midst of a meaningful transformation, office investments may eventually present compelling investment opportunities in select markets around the country. To this end, Cadre recently published its list of MVP markets highlighting the most promising markets in which select office assets could outperform the national trend over the next 24 months.
“We anticipate that in the coming months and years, we will see a larger pushback towards the office, either on a full-time or hybrid basis. In today’s uncertain investment landscape, we will continue to evaluate all opportunities we cross with an attractive basis and market-level tailwinds,” said Cadre’s Managing Director and Head of Investments, Dan Rosenbloom. “In completing the lifecycle of our Colorado office portfolio, we have delivered another compelling micro opportunity in a challenging macro environment.”
At the time of purchase, Cadre was attracted by the opportunity to own a diversified collection of quality assets with strong existing cash flow and upside potential through additional leasing and the ability to sell assets individually. The portfolio offered properties in a tightening office market that had seen seven years of high office occupancy and limited new office space to meet the demand. Cadre sold individual assets from the portfolio over a multi-year period, successfully leasing the properties and identifying attractive sale pricing relative to the remaining business plan risk.
“Our most recent portfolio sale demonstrates Cadre’s agility in uncertain times, working alongside experienced partners to generate returns for our investors,” said Ryan Williams, Cadre founder, executive chairman, and co-chairman of Cadre’s Investment Committee. “While we remain highly selective amid uncertainty, our nimble approach to investment management allows us to act quickly when opportunities arise and manage effectively throughout the asset lifecycle.”
