Cadre, the real estate investing startup co-founded by White House senior adviser Jared Kushner, was the primary beneficiary of a property-flipping investment that may have been less profitable if it had fully complied with New York City disclosure rules about rent-regulated tenants.
Since joining the government, Kushner has frequently updated his required financial disclosures with new information, and on a different set of disclosures he left off more than 100 contacts with foreign officials. He has been unable to obtain a top-level security clearance. Kushner’s lawyers have repeatedly maintained that he doesn’t mix private business with his government role.
In an email, Kushner Cos. said its government filings are prepared by third parties and reviewed by independent counsel.
“If mistakes or violations are identified, corrective action is taken immediately,” the company stated. “Kushner would never deny any tenant their due process rights. Regarding the specific buildings mentioned, all identified violations or complaints were resolved or are in the process of being resolved expeditiously."
Cadre’s star has soared since the Queens deal. In June, it raised $65 million in a series C funding round led by Andreessen Horowitz. Then, in January, it announced it secured$250 million of client money from Goldman Sachs to invest in real estate deals
“We take our responsibilities as a steward of our investors capital very seriously, and apply a rigorous due diligence process to all of our investments,” a spokeswoman for Cadre said in an emailed statement. “Cadre has closed more than a dozen investments nationally and relies on its operating partners to manage day-to-day operations, including any administrative filings or work with third parties. The issues raised with these particular filings were not known to us prior to today. We understand that appropriate corrective actions have been taken to swiftly resolve any issues.”
The real estate investing platform is backed by Thrive Capital, the venture investing firm founded by Joshua Kushner, Jared’s brother.
When the buildings were sold, Ryan Williams, who co-founded Cadre with the Kushner brothers, said in a statement that experience and data analytics “allowed us to identify this compelling market opportunity and unlock the value of the portfolio alongside a valued operating partner, Kushner Companies.”
Cadre’s ties to the Kushners has come with blessings and curses. Initially, the connections helped bring in advisers, investors and customers. But since Jared Kushner’s ascent to White House, the company has been entangled in questions about Kushner’s financial disclosures and an investment from Yuri Milner, a Russian-born investor with ties to a sanctioned bank in that country.
Like many real estate companies, Kushner Cos. often seeks funds from investment companies to help finance deals. A Bloomberg report in December found that many buildings popularly known to be Kushner properties are mostly owned by others.
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