Cypress Equity, LWK Partners, and Sabal Join Forces for $30 Million Workforce Housing Initiative in Los Angeles

Partnership for Affordable Housing in Los Angeles

In a significant move to address the ongoing housing crisis in Los Angeles, Cypress Equity Investments (CEI), LWK Partners, and Sabal Investment Holdings have embarked on a $30 million venture. This collaboration aims to acquire a portfolio of 75 workforce housing units and develop an additional 52 units. The efforts are part of a newly formed joint venture focused on increasing the availability of affordable housing in the Greater Los Angeles area.

Meeting Critical Housing Needs

The joint initiative comes at a time when the demand for affordable housing in Los Angeles has reached critical levels. By leveraging a recent state law that allows for the addition of new units to existing multifamily buildings, this partnership is poised to make a substantial impact on the housing shortage. The acquisition marks both a strategic investment and a social commitment to provide high-quality, attainable housing for working families and communities in need.

“By streamlining access to capital and enhancing our execution capabilities, we can accelerate the delivery of quality housing in markets constrained by supply,” said Michael Sorochinsky, CEI’s Founder and CEO. His sentiment reflects the broader goals of the joint venture: to facilitate sustainable growth in a landscape often limited by regulatory and market barriers.

A Strategic Collaboration

The partnership's strategy is not just about immediate acquisitions but also about long-term scalability. Drake Ayres, Managing Director at Sabal, emphasized that this collaboration allows them to tap into policy-driven opportunities, creating an impactful approach to housing. “Together, we are driving accretive growth from stabilized assets,” he noted, illustrating the dual focus on both expansion and support for local communities.

Austin Nissly, Co-Founder and Partner at LWK Partners, added that this transaction is anticipated to represent the first of many endeavors under the joint venture. “Our approach capitalizes on economies of scale in a fragmented and highly regulated market,” Nissly explained, highlighting their competitive advantage in fostering affordable housing.

About the Partners

Cypress Equity Investments (CEI)

Founded in 2001, CEI has established itself as a leader in the real estate sector, focusing primarily on multifamily and self-storage assets. CEI has an extensive portfolio of over 21,000 multifamily units and select commercial projects valued at more than $13 billion. Their disciplined approach emphasizes market research, entitlement execution, and construction management.

LWK Partners

LWK Partners is known for its strategic focus on multifamily assets in Los Angeles, targeting properties with untapped potential. As of Q4 2025, LWK has acquired 32 buildings totaling over $125 million in asset value, with continued efforts in further development of additional multifamily units. They aim to create value through operational enhancements and renovations.

Sabal Investment Holdings

Sabal is a renowned player in the commercial real estate investment landscape, specializing in underwrite and structure innovative funding solutions. Their diverse set of institutional investors includes pension funds and foundations, aimed at maximizing real estate opportunities across varying market conditions.

Conclusion

The collaboration between Cypress Equity, LWK Partners, and Sabal Investment Holdings marks a promising step towards alleviating the housing shortage in Los Angeles. By combining their resources and expertise, they aim to deliver high-quality housing solutions that not only meet the demand but also support the local communities in which they invest. This joint venture signifies a forward-looking approach in a city facing significant challenges, highlighting the impact of collaborative efforts in shaping a sustainable future for housing in urban settings.