Cadre Opportunity Zones Opportunity Zones is a social impact program providing material tax benefits to incentivize investment within underserved communities across the U.S. The program was established as part of the Tax Cut and Jobs Act of 2017. Cadre has developed a focused strategy and pipeline of transactions with leading operators. In doing so, we seek to deliver investors an attractive portfolio of qualifying Opportunity Zones investments. Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 1 Opportunity Zones Overview With U.S. investors currently holding over $6.1 trillion in unrealized capital gains,1 the Opportunity Zones program creates an attractive incentive to deploy these gains as a force for community reinvestment and economic growth. What is an Opportunity Zone (“O-Zone”)? Introduced by the Tax Cut and Jobs Act of 2017, “Opportunity Zones” are low-income census tracts designated by state and federal government. Qualifying investments in these tracts, which must be made through existing capital gains, are eligible for preferential tax treatment. Examples include both rural communities and burgeoning lower-income urban communities like the Arts District in LA. $ What is an Opportunity Fund (“O-Fund”)? An investment vehicle that invests at least 90% of its assets in qualified Opportunity Zones. Investors that reinvest capital gains into an O-Fund can receive meaningful tax breaks including capital gains deferral, a substantial step up in tax basis, and tax abatement of all post-investment appreciation. Unlike the 1031 exchange program that has long been used to defer real estate-related taxable gains, eligible capital gains are not limited to real estate and can include gains from stocks and business or personal assets. What types of investments can be made through an Opportunity Fund? Investments are required to be equity investments in businesses or real estate within an Opportunity Zone. Real estate investments are subject to a “substantial improvement” 2 requirement within 30 months of the purchase date. As a result, O-Funds are intended to target development and rehabilitation projects. For example, an O-Fund could invest in a ground-up development of a mixed-use project that includes new retail and workforce housing. (1) Source: Economic Innovation Group (2) To satisfy the “substantial improvement” requirement, a Qualified O-Fund must double its investment (basis) “with respect to” the property during any 30-month period after acquisition. Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 2 Tax Benefits The Opportunity Zones program incentivizes long-term investment by phasing in the following tax benefits over a ten-year period: Defer Reduce Eliminate Taxes on capital gains until December 31, 2026 Amount of deferred taxes owed by up to 15% Tax on capital gains from the O-Fund investment if held for 10 years Impact of Hold Period 1 INVESTMENT PERIOD DEFER CAPITAL GAINS REDUCE TAXES BY 10% REDUCE TAXES BY ADDITIONAL 5% ELIMINATE O-FUND CAPITAL GAINS 0 - 5 Years 5 - 7 Years 7 - 10 Years 10 Years + (1) Given taxes are deferred until December 31, 2026, investments must be made by the end of 2019 to receive the 15% reduction and 2021 to receive the 10% reduction. Both deferral and future elimination remain after these respective dates. Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 3 Quantifying the Tax Benefits Due to the outsized benefit of eliminating O-Fund capital gains after a ten year hold, investors should target assets poised for long-term capital appreciation. Holding an O-Fund investment for ten years is estimated to generate 300-400 bps higher after-tax returns and 2x the profits compared to a standard taxable portfolio appreciating at the same rate. Scaling of Tax Benefits 1 STANDARD PORTFOLIO O-FUND Assumes an initial pre-tax gain to invest of $1mm 5 Years $1.0mm 10% Tax Reduction $1.1mm 7 Years $1.1mm Additional 5% Tax Reduction $1.3mm 10 Years $1.3mm Eliminate O-Fund Capital Gains $1.8mm Eliminating capital gains on O-Fund profits means substantial excess return compared to a standard portfolio. However, the underlying real estate investment must be profitable in order to fully realize this benefit. 10-Year After-Tax Return Comparison AFTER-TAX IRR APPRECIATION RATE STANDARD 7.0% 10.0% 12.0% 2.8% 5.4% 7.1% O-FUND 5.6% 8.8% 11.0% AFTER-TAX MULTIPLE STANDARD 1.3X 1.7X 2.0X AFTER-TAX PROFITS O-FUND STANDARD O-FUND 1.6X 2.2X 2.6X $324,000 $687,000 $985,000 $765,000 $1,391,000 $1,904,000 (1) Assumes long-term capital gains tax of 23.8% (federal capital gains tax of 20% and net investment income tax of 3.8%), no state income tax and annual appreciation of 7% for both the standard portfolio and the Opportunity Fund Investment. Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 4 Illustrative Investment Timeline $1mm Investment / Ten-Year Hold 1 1 JAN 1, 2019 Liquidation Taxpayer generates a capital gain of $1mm and is eligible for tax benefits if the gain is reinvested into an O-Fund within 180 days. 2 MAY 31, 2019 Investment + Deferral Taxpayer invests the $1mm gain into a qualified O-Fund and defers $240k of tax liability until the earlier of (i) the investment sale date or (ii) December 31, 2026. 3 MAY 31, 2024 Year 5 Tax Reduction Deferred capital gains tax reduced by 10%. $240k tax liability is reduced to $215k. 4 MAY 31, 2026 Year 7 Tax Reduction Deferred capital gains tax reduced by an additional 5%. $240k tax liability is reduced to $200k. 5 DEC 31, 2026 Tax Recognition Date Given the asset has not yet been sold, taxpayer must pay the $200k deferred capital gain tax liability. 6 MAY 31, 2029 Disposition + Elimination Taxpayer’s $1mm O-Fund investment has appreciated 7% annually since 2019 and is sold for $2mm. Since the asset has been held for 10 years, taxes on the $1mm of O-Fund capital gains are eliminated, generating 2x the after-tax profits of a standard portfolio. (1) Assumes long-term capital gains tax of 23.8% (federal capital gains tax of 20% and net investment income tax of 3.8%), no state income tax and annual appreciation of 7% for both the standard portfolio and the Opportunity Fund Investment. Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 5 The Cadre Advantage: A Differentiated Approach We are uniquely positioned to offer a differentiated Opportunity Zone program because the optimal O-Zone investment strategy and deal structure align with our existing investment approach. Our Value Proposition Efficient Diversification Access a series of O-Zone opportunities with data-driven diversification across select markets and alongside experienced operating partners. We seek to avoid the risks associated with single asset, market, or developer strategies. Experienced Investment Team While the program's tax benefits are highly attractive, investments must be grounded in the merits of the real estate. The Cadre team brings over $50 billion of collective transaction experience at top tier investment firms, including ~$10bn of development experience across the U.S. We co-invest in each opportunity alongside our investors and actively manage all of our assets. High-Quality Operator and Developer Network We have developed a pipeline of actionable opportunities within our target O-Zone markets, driven by our network of over 300 local operating partners. These relationships provide us with a unique sourcing advantage across O-Zones, as well as local market development and repositioning expertise. Unique Single-Asset Fund Structure Since inception, we’ve focused exclusively on structuring single-asset funds, which we believe is the optimal structure for Opportunity Zones investing. Leading law firms have noted that “a traditional [commingled] fund structure with multiple properties is not a straightforward fit for the OZ Program” 1 and that instead, fund managers “may wish to create a separate fund for each property.” 2 (1) Source: Duval & Stachenfeld LLP, October 25, 2018 (2) Source: Stroock & Stroock & Lavan LLP, August 28, 2018 Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 6 Cadre Approach The economic disparity between O-Zones and other areas highlights the need for a targeted approach to market selection. By assessing population and income potential at the census tract level, we are able to rank O-Zones according to their growth prospects. Summary Comparison: O-Zones vs. Non O-Zones 1 O-ZONES NON O-ZONES % of U.S. Population 11% 89% % In Rural Areas 22% 16% $49,176 $82,994 47% 66% $240,713 $390,394 Avg. Household Income Homeownership Rate Avg. Home Value Scoring O-Zones We apply a scoring system for each O-Zone census tract using the below forward-looking metrics: 5 and 10-year population growth. 5-year household income growth: overall and prime earning age cohort (25-44 yr olds) We then rank metro areas with the largest concentration of high scoring O-Zone census tracts (weighted by population). We target a subset of the highest scoring markets where we believe our operating partner network is likely to surface actionable opportunities. (1) Sources: U.S. Census, STI Popstats Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 7 Data-Driven Market Selection There are over 8,700 census tracts designated as Qualified Opportunity Zones. We believe our data-driven investing approach allows us to seek neighborhoods that are capital-deprived today, but where investments can help drive future growth. Projected population growth for these target O-Zones is 2x the average for all O-Zones and 110 bps higher than Non O-Zones over the next 10 yrs. Annual household income growth for target O-Zones is projected to be 240 bps above the average for all O-Zones and 280 bps higher than Non O-Zones over the next 5 yrs. We further evaluate a broader set of supply & demand variables within these target markets to assess specific opportunities. Forecast Growth Comparison 1 Non O-Zones O-Zones Cadre Target O-Zones 13.2% 10.4% 10.8% 9.5% 11.0% 12.7% 10.0% 8.4% 4.5% 4.1% 4.8% 2.1% 5-Year Population Growth 10-Year Population Growth 5-Year Overall Household Income Growth 5-Year Prime Earners (25-44yr old) Household Income Growth (1) Sources: U.S. Census, STI Popstats Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 8 Cadre Target O-Zones Top 10 target O-Zone markets: Houston, Phoenix, San Francisco, Atlanta, Miami, Los Angeles, Inland Empire, Portland, Seattle, and Philadelphia. We supplement our top-down, data-driven market analysis with a bottoms-up, relationship-driven sourcing effort to identify attractive opportunities within each market. Target diversification across property types with a focus on multifamily, mixed-use and industrial opportunities. The current pipeline includes a number of near-term, actionable opportunities within target markets that Cadre expects to commit to by the end of 2018. Seattle Portland Philadelphia San Francisco Inland Empire Los Angeles Atlanta Phoenix Houston Miami Los Angeles Illustrative Los Angeles Opportunity Zones Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 9 Disclaimers This presentation has been prepared by Quadro Partners, Inc. (together with its affiliates and their respective employees, agents, directors and officers, RealCadre LLC, a broker/dealer registered with FINRA and a member SIPC, and CCV LLC, an SEC registered investment advisor, collectively, “Cadre”) on the basis of information obtained from a variety of sources, some of which may be public, as of the specified date. Cadre does not undertake any duty or obligation to update the information. Cadre does not make nor give any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation or otherwise supplied to the recipient, at any time by or on behalf of Cadre whether in writing or not, relating to the opportunity discussed herein is complete or accurate or that it has been or will be audited or independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. This presentation is not intended to be exhaustive and, in particular, may not contain disclosure of all of the risks associated with any opportunity described herein; potential investors must perform their own examination and inspection of any opportunity and information relating to same, and shall rely solely on such examination and investigation and not on this presentation or any materials, statements or information contained herein or otherwise provided. This presentation is not to be construed as investment, tax or legal advice in relation to the relevant subject matter; potential investors must seek their own legal or other professional advice. This presentation contains forward-looking statements. These forward-looking statements, which are subject to numerous risks, uncertainties and assumptions, may include projections of future financial performance, anticipated growth strategies and anticipated trends in the business, the market and otherwise. These statements are only predictions based on current expectations and/or projections about future events, subject to change due to actual results, level of activity, performance or achievements. Any forward-looking statement, including any estimate or forecast, contained in this presentation is not a guaranty, assurance or representation by Cadre as to future matters and nothing contained herein should be relied upon as a guaranty, assurance or representation as to future matters. The projections based on financial and other pro forma data set forth in this presentation were not prepared with a view toward compliance with U.S. Generally Accepted Accounting Principles or any other published standards. Projections and other pro forma data are derived from estimates, as of the date of this presentation, based on certain hypothetical assumptions, which are inherently subject to significant business, economic and competitive uncertainties and contingencies. Independent estimates about the future benefits of any opportunity and pro forma data should be developed by investors before any decision is made on whether or not to invest in any opportunity and investors should not rely on the projections and pro forma data contained herein. Summaries of any documents discussed herein are not intended to be comprehensive or all inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual document to which they relate. This presentation does not constitute an offer or invitation to make an investment, in any form, in any opportunity discussed herein. It has been prepared for the sole purpose of obtaining indications of interest about a potential opportunity, any investment or commitment in which should only be made upon the basis of the full review, negotiation and execution of full investment information and documentation. This is not an offer of an investment opportunity in any jurisdiction where it is prohibited or where a pre-filing or other action is required. The information in this presentation is confidential and is furnished solely for the purpose of review in connection with the opportunity discussed herein. The information is not to be used or reproduced for any other purpose or distributed or made available to any other person without the express written consent of Cadre. This offering is subject to prior placement and withdrawal, change, cancellation or modification, all without notice. Date of first use: September 2018 Cadre Opportunity Zones ir@cadre.com +1 (646) 494-7233 10