The Top 100 Real Estate Fund Managers 2021

Anna-Marie Beal

The firm is anticipating launching an opportunistic SFR, multifamily fund.

Cypress Capital Group is betting on New York City and against the Sun Belt migration as it believes Covid-19 trends are overblown.

The New York manager, which is currently planning the launch of an opportunistic SFR, multifamily fund, has urbanisation trends as a key component in its strategy.

“There’s a whole hand-wringing that everybody’s leaving New York to go to the suburbs [and] while this makes foran exciting story, it’s absolutely not true and we will countertrend that trade,” Cypress managing partner Wen Shiau told REFI

Earlier this month, REFI revealed Cypress is launching an opportunistic fund focused on US single-family rental and multifamily housing.

Cypress Capital Partners 2022 is targeting $100m and expects an initial $20m in the first six months.

The net migration in California has been zero in the last five years, according to Cypress data, highlighting that less than 1% of people have left in this time frame.

“What’s actually happening is that California has been upscaling,” Shiau said. “It’s true that California has become more expensive, and people who can afford the higher living costs have moved in.”

Cypress believes this highlights gentrification and urbanisation. It also shows that the tax base of places like California are stronger than ever.

Cypress invests in tech-centred cities that have dominated economic growth in both public and private markets, namely Silicon Valley and New York. It is now planning to expand its geographic scope to Austin.

Cypress places urbanisation at the core of its strategy.

“Do not deny the fact that the urbanisation trend is a universal truth,” Shiau said. “It’s one of our core investment themes.”

This not only applies to key US markets like New York but also European hot spots, namely London and Paris, as well as Asian cities such as Beijing and Shanghai, Shiau added.

Company background

The firm has derived from a family office. Its AuM stands at $52m, with a total asset value of $78m.

The family office still acts as an anchor investor of its funds, with up to 50% AuM of their earlier funds.

Shiau began his career on Wall Street and had a 20-year stint in Asia. He started in 1992, working for firms such asCredit Suisse, Lehman Brothers and Greenwich Capital.

He now works from New York alongside his team Joseph Luik, Jay Chen, Lev Schechter and Pui Wong.

The advisory team includes Samuel Milbank and Michael Yuen.

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