Cypress Capital Group

Investing Problem:  Access macro trends in technology without the high failure rates of VC or vol of pub equities. Our solution: 12 yrs, 30 residential projects in US tech cities, 20% IRR, no losses. Let's talk?

The very core investment thesis of Cypress Capital Group’s Residential Real Estate investment in US tech centered cities… Dr Solow, groundbreaking Economist and Nobelist: “I discovered to my great surprise that the main source of growth was not capital investment but technological change,” Professor Solow said in an interview in 2009, also for this obituary. Specifically, he estimated that technical progress accounted for a surprising 80 percent of 20th-century American growth. He later pointed to Silicon Valley as a validation of his theory. https://lnkd.in/gJ2VvpeA Robert M. Solow, Groundbreaking Economist and Nobelist, Dies at 99

Following our article What can we invest in CRE Today Nov 2023, we would like to discuss Where can we invest in CRE today? #privateequity #realestate #commercialrealestate #residentialrealestate #siliconvalleyrealestate #bayarearealestate #valueadd #distressedassets #investmentstrategy #investing #investingtips #equitymarket #multifamily #artificialintelligence #newyorkrealestate #realestatedevelopment #commercialrealestate #commercialrealestateinvesting

Despite recent rains, we've made great progress at the Kentfield site! The framed duplexes now have a 2nd floor! #Cypresscapitalgroup #DesignBuild #SiliconValleyRealEstate #TechCities #Hillsborough #SanMateo #SanCarlos #RedwoodCity #PortolaValley #Woodside #Atherton #MenloPark #PaloAlto #LosAltos #MountainView #Sunnyvale #Cupertino #SantaClara #Campbell #LosGatos #Saratoga #WillowGlen

There is much to like in the analysis by the author, particularly the localization data to assess affordability. The US is too large to talk about avg home price, etc. Here are some additional caveats that we would add to the author’s note: “High prices, high mortgage rates and a shortage of homes: Combined, they’ve created today’s crisis of affordability.” 1) We would agree that high prices in residential, as always act like a sticky, step function. Prices rarely come down except for large economic shocks. 2) mortgage rates should come down in 2024 and this will increase affordability 3) but the key driver for affordability is classic Econ 101: must increase supply through policies which encourages building, not NIMBYism. Not rent control which restricts supply such as NY. It is exactly because we are pessimistic that NIMBYism and rent control will not go away, we utilize this as our economic moat as investors. We love to invest and develop where supply is restricted, driving up prices. Hence the cautionary tale of oversupply in Austin, Charlotte and Atlanta where prices and rents are coming off.

What can we invest in CRE today? In today's commercial real estate (CRE) landscape, challenges abound. At a recent excellent Marcus & Millichap conference, Northern California Multifamily Forum, experts in the field discussed the following key points… https://lnkd.in/dfsdzpvg