Multifamily Developer Announces Affordable Housing Platform

Multifamily developer Cypress Equity Investments (CEI) and an unnamed Florida-based investment firm with more than $50 billion in assets under management have launched a platform to deploy significant capital into the acquisition and development of affordable housing across the country.

The new venture is kicking off with an initial pipeline of 11 ground-up development sites in high-resource markets in Northern and Southern California as well as South Florida. Additional target markets will include the Carolinas, Tennessee, Texas, the Northeast, and other high-opportunity regions, according to CEI.

"This venture represents a major step forward in addressing the nation's growing need for modern, clean, and safe affordable housing," said Michael Sorochinsky, CEI's founder and CEO. "By assembling substantial financial resources with CEI's development and operational expertise, we are building a platform that can deliver high-quality, attainable communities in locations that offer real opportunity for residents. Our goal is not just to build housing but to create lasting value-for families, for communities, and for our partners."

Founded in 2001, CEI has purchased, developed, and invested in 160 projects, amassing a portfolio and pipeline in excess of 21,000 multifamily units as well as select commercial projects valued at more than $13 billion. Since 2001, it has delivered institutional-grade multifamily communities across the United States, including an affordable housing initiative that began in 2015.

The new endeavor is structured to respond to the deepening national housing crisis-especially the widening gap between market-rate rents and what many households can afford. The platform will prioritize high-resource communities that are characterized by strong access to employment, education, transit, and retail services, said executives.

"Our communities will be thoughtfully designed to meet the needs of the neighborhoods in which they are located and will serve households earning approximately 30% to 70% of the area median income," the firm told Affordable Housing Finance. "By offering a diversified mix of affordability levels within each project, we can address the full spectrum of demand from extremely low-income renters to essential workforce households while remaining fully compliant with low-income housing tax credit (LIHTC) affordability requirements."

CEI plans to develop both family and senior housing, utilizing 4% LIHTCs paired with tax-exempt bonds. "We will supplement this with gap equity as needed, with a focus on minimizing reliance on additional public subsidy to streamline closings and accelerate delivery," according to firm officials.

The company will lead the full development process from acquisition and entitlement through construction and stabilization.