How Cypress is building an affordable housing platform

Core Insights - Cypress Equity Investments is launching an institutional-grade affordable housing platform in partnership with a Florida-based investment firm that manages over $50 billion in assets [2][3] - The venture aims to address the significant undersupply of affordable housing, particularly in the Low-Income Housing Tax Credit (LIHTC) sector, with plans to scale quickly across various high-opportunity regions in the U.S. [3][4] Company Overview - Cypress Equity Investments has a portfolio and pipeline of over 21,000 multifamily units and has been involved in affordable housing for about a decade, focusing on LIHTC properties [1][7] - The company has successfully completed around a dozen deals in the LIHTC space and sees an opportunity to expand its investment footprint [7] Market Conditions - There is a notable demand for affordable housing, with current labor market weaknesses and rising concerns about layoffs and economic conditions [5] - The luxury housing market is not meeting the needs of many renters, as rents have been increasing significantly, leading to a headwind in that sector [4] - The lack of affordable housing creates a favorable environment for growth in the LIHTC space, which is expected to benefit from the current market dynamics [4][5] Development Plans - The initial pipeline includes 11 ground-up development sites in Northern and Southern California and South Florida, with future targets in South and North Carolina, Tennessee, Texas, and the Northeast [3] - The company plans to deploy significant capital to acquire and develop affordable housing across the United States [2]