Cypress Equity Investments (CEI), an institutional multifamily developer and real estate investment company, and LWK Partners (LWK), a real estate private equity firm focused on the acquisition and operation of attainable value-add multifamily assets, secured a $100 million bespoke credit facility from Ascent Developer Solutions (AscentDS) to accelerate LWK-CEI’s workforce housing density addition strategy.
The strategy addresses the growing Los Angeles housing shortage by capitalizing on a recent state law that allows investors to add net new units to existing multifamily assets. The financing facility from AscentDS considerably reduces financing friction for LWK-CEI’s aggregation strategy, allowing the platform to transition from acquisition to construction loans.
“This facility with Ascent Developer Solutions marks another important step in advancing our workforce housing density addition strategy,” Michael Sorochinsky, founder and CEO of CEO, said. “By streamlining capital access and execution, we’re able to accelerate the delivery of high-quality, attainable housing in supply-constrained markets like Los Angeles, a critical need for working families and local communities.”
Robert Wasmund, Founder and CEO of AscentDS, said, “AscentDS is proud to continue our strong relationship with Cypress Equity Investments and are looking forward to expanding our relationship with LWK. This facility continues AscentDS’s commitment to partnering with best-in-class sponsors as they develop new strategic approaches to address the national housing shortage.”
Matt Carney, co-founder and partner of LWK Partners, said, “The AscentDS facility represents a structural competitive advantage for our platform, uniquely positioning us to execute on our strategy in an expedited manner in a fragmented space.”
