Cypress Equity Investments and LWK Combine Efforts for Housing Growth
In an era marked by a growing housing shortage in major urban areas, Cypress Equity Investments (CEI) and LightWell-Keystone (LWK) have announced a strategic partnership aimed at enhancing workforce housing density. This collaborative effort intends to leverage new legislative advances that permit the addition of net new units to existing multifamily properties in bustling urban centers.
Addressing the Housing Crisis
The partnership between CEI, an established multifamily developer, and LWK, known for its expertise in attainable value-add multifamily assets, aims to provide innovative solutions to the housing challenges faced, particularly in Los Angeles. Through this joint venture, both companies are set to capitalize on over two decades of CEI's development experience and LWK's strong acquisition capabilities.
Catalyzing Development through Legislation
Michael Sorochinsky, the Founder and CEO of CEI, expressed enthusiasm regarding this partnership. He noted, "This is an event-driven opportunity to address the multifamily housing shortage throughout Los Angeles. Our extensive development experience paired with LWK’s expertise and existing portfolio positions us to respond effectively to the growing demand for accessible housing units on a larger scale."
Creating a Meaningful Impact
Moreover, Austin Nissly, Co-Founder and Partner at LWK, acknowledged the importance of the new legislation for housing in California and the privilege of collaborating with an industry leader like CEI. He articulated, "This partnership enables us to strategically add density to tackle the prevalent housing issues in Los Angeles and across California," highlighting the significance of their combined resources to create more living spaces where they are most needed.
Plans for Future Development
CEI and LWK have set ambitious goals to grow LWK's existing portfolio from 200 units to a remarkable 5,000 multifamily units. This expansion is anticipated to take place over the next five years, effectively scaling their operations and addressing the housing needs of many.
About Cypress Equity Investments
Founded in 2001, Cypress Equity Investments has established a significant presence in the multifamily development sector, managing 156 projects and approximately 21,000 multifamily units across the United States. With a focus on Los Angeles, CEI's developments have culminated in a value exceeding $13 billion. The company has reported an impressive performance with an equity-weighted average internal rate of return (IRR) of 40.1%, alongside an equity multiple of 2.51x on its realized investments to date.
About LightWell-Keystone
LightWell-Keystone operates primarily in Los Angeles, concentrating on acquiring and managing value-add multifamily assets. The firm zeroes in on underperforming properties, implementing various strategies for operational enhancements, renovations, and density increases via new unit development. Founded in 2024 by industry veterans, LWK seeks to transform the multifamily landscape while enhancing the value of the communities in which they operate.
Frequently Asked Questions
What is the primary goal of the partnership between CEI and LWK?
The main aim is to address the housing shortage in Los Angeles by increasing the density of workforce housing through a strategic partnership and leveraging new legislation.
How many multifamily units do CEI and LWK plan to develop?
The partnership aims to grow the existing portfolio from 200 units to a target of 5,000 multifamily units over the next five years.
What experience does CEI bring to the partnership?
CEI brings over 20 years of experience in multifamily development, having managed numerous projects valued in the billions.
What strategies does LWK employ to enhance property value?
LWK focuses on acquiring undermanaged assets and implementing operational improvements and value-add renovations to create additional value.
When was LWK founded and by whom?
LWK was founded in 2024 by Austin Nissly, Matt Carney, Matt Osborn, and Andrew Altman, focusing primarily on multifamily assets in Los Angeles.
