Two real estate development companies have teamed up to build communities at varying price points in leading cities across the U.S.
Cypress Equity Investments (CEI), with experience in sustainable, institutional-quality properties, has formed a joint venture partnership with Winter Properties, a vertically-integrated real estate company that focuses on major urban markets in the U.S.
Michael Sorochinsky, CEI’s founder & CEO, said in prepared remarks that the company needs to build as much quality housing at every price point, including affordable, workforce, market-rate and luxury, to help address the critical nationwide housing shortage. According to CEI, the partnership will focus on delivering innovative and sustainable communities at all economic levels.
So far, the partnership has invested in multifamily developments in Los Angeles, Dallas, Denver and New Jersey. In New Jersey, the partnership will construct Avenue G, a 354-unit rental community in the growing Bayonne market. Construction for the New Jersey project is expected to start in spring 2022.
In Los Angeles, CEI and Winter are working on 2225 Sunset, a 176-unit community in the city’s Echo Park neighborhood. The community on Sunset Boulevard is also expected to break ground in spring 2022. CEI also acquired three contiguous parcels to construct Blackburn Los Angeles, a 28-unit, 140-bedroom luxury co-living community. The partnership is expected to start construction on the four-story community by the end of 2021.
EXPANDING THE CURRENT PIPELINE
While CEI’s current pipeline for groundbreakings from 2021 to 2022 totals nearly $1.8 billion in capitalization, the company expects the partnership with Winter Properties to increase the output by 50 percent.
Outside the partnership, CEI is also working with two other joint venture partners on a 212-unit garden-style community in Tamarac, Fla., that broke ground in April.
For the initial phase of the partnership between CEI and Winter, Sorochinsky told Multi-Housing News that CEI is planning to grow its footprint in California, Texas, Denver and the Southeast U.S. region. Sorochinsky also told MHN that the partnership has multiple deals under contract, which are expected to close by the end of the year, and expects to be more active in 2022.