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Cypress Equity Investments Website
Cypress Equity Investments Overview
Cypress Equity Investments (CEI) is a leading real estate investment and development firm founded in 2001 by Michael Sorochinsky, built on over three decades of combined professional experience in real estate strategy and execution. Since its inception, CEI has acquired, developed, and invested in more than 156 projects, encompassing over 21,000 multifamily units and select commercial developments valued at more than $13 billion across the United States.
CEI’s success stems from its disciplined and data-driven approach to market research, acquisition analysis, entitlement execution, construction management, and asset performance. Its primary focus is Class A multifamily and mixed-use developments, including market-rate, affordable, and workforce housing in high-growth markets such as California, Texas, Florida, Chicago, Boston, Portland, and Las Vegas.
The firm’s diverse portfolio showcases signature developments like OnSunset in Los Angeles, The Gallery on Wells in Chicago, Elysian at Tivoli in Las Vegas, and Edge Avenue G in Bayonne, New Jersey—projects recognized for their innovative design, premium amenities, and strong market fundamentals. CEI’s reputation is built on an ability to adapt to evolving economic conditions and deliver consistent, superior risk-adjusted returns for investors.
Led by Founder & CEO Michael Sorochinsky, CEI’s leadership team combines deep expertise in finance, development, and operations to drive forward-thinking strategies in multifamily, commercial, and life science real estate. Beyond profitability, the firm emphasizes sustainability, community integration, and architectural excellence, reflecting its long-term vision to shape vibrant urban environments that enrich the lives of residents and investors alike.
Address
12121 Wilshire Blvd.
Los Angeles,
California
90025
Year Founded
2001
Operates In
California
New Jersey
Asset Classes
Mixed Use
Development
Multifamily
Accepted Investors
Accredited
Kurt N.
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"Multifamily: Capital Stack Dilution and Principal Loss"
I invested with Cypress in a class-A apartment development project in Texas, which was a highly active market at the time of the investment. The project experienced construction delays and significant cost overruns. A primary driver of the budget issues was a design deficiency discovered late in the process regarding door widths that did not meet Fair Housing and ADA regulations. Correcting this error resulted in substantial additional costs. Although the sponsor achieved 75% occupancy, the rental cash flow lagged behind projections, and the project ran out of operating capital. Cypress Equity provided regular reports and disclosed these operational issues as they occurred. The sponsor managed to secure rescue capital from a preferred equity investor. However, because this capital sits senior to the common equity in the capital stack, it is likely that common equity limited partners will experience a total loss of principal. I invested in this project for potential capital gains, which will not materialize. Due to the lack of operational oversight regarding the design process and what I consider to be too aggressive underwriting, I would not invest with this sponsor again.
