At Cohen-Esrey, we have a multitude of investors that entrust their capital with us – a responsibility we take seriously. Who are these investors?
- Accredited Investors: Section 501 of the Securities Act of 1933, as amended, defines Accredited Investors as a wide range of individuals and institutions who meet certain criteria. For our purposes these are individuals who had an income of $200,000 in each of the two most recent years, or joint income with a spouse in excess of $300,000 in each of those years. Alternatively, this person may have an individual (or joint) net worth of $1 million exclusive of their personal residence.
- Institutional Investors: This category of investor includes family offices, pension funds, insurance companies, endowments, corporations, and other non-individual entities.
Ways to Invest
Cohen-Esrey launched its first programmatic apartment investment fund, CEAI Fund XXIII, in
2016. Over the span of four years, the fund deployed $13.2 million in co-investment equity
to acquire 4,300 units across 13 assets. The firm syndicated a total of $119.7 million in
equity for the nearly $400 million portfolio. CEAI Fund 24 was subsequently formed in 2020
to invest $26.5 million in a portfolio of properties like Fund XXIII.
Currently Fund 24 has invested $21.6 million in 14 assets totaling 4,271-units at a total cost of $750.4 million. Fund 24 is no longer accepting new investment capital but expects to acquire another one or two properties. CEAI Fund 25, our newest programmatic fund, is pursuing the same investment thesis and still has room for new investors.
CEAI Fund 25, LLC, is our current co-investment fund designed to invest in tandem with LP equity in Class B and workforce housing apartment communities across the country. We are raising up to $26.5 million to co-invest in 16-18 properties alongside our primary LP equity sources.
As we have seen in the past, we believe that from a risk perspective, in an economic downturn or overbuilding, Class A rents will likely be reduced, but not to the point that it will drive significant numbers of Class B renters into Class A properties. Thus, Class B apartment communities are well-positioned for excellent returns over the long-term and may not be as risky as Class A properties when there is pressure on the market.
In addition to our programmatic fund offering, CEAI regularly provides investment
opportunities in the form of a single-asset special purpose vehicle (an LLC). These
investment opportunities allow individuals to invest in one particular property as opposed
to a portfolio of properties (photo at right features Trails as Bartram Park in
FL, a project that utilized this type of investment structure). Property-specific investment
opportunities are shared with interested investors as they become available.
One such opportunity is available now in the form of an 8% guaranteed return investment vehicle affiliated with our acquisition of Park Edge Apartments in Lenexa, KS. Click the link below for more information on this specific offering.
The Cohen-Esrey Development Group, LLC (CEDG) specializes in creating high-quality housing options for working families and fixed-income senior citizens, emphasizing not only the physical development but also building thriving communities that positively impact residents' lives through strategic partnerships and support services. Institutional Investors may receive tax benefits through affordable housing tax credits, and certain projects are located in Opportunity Zones where Individual Investors may use Section 1031 exchange rules to defer capital gains.
Tax Credit Syndication
Cohen-Esrey Capital Partners, LLC (CECP) is the capital formation unit for the Cohen-Esrey family of companies. In addition to sourcing debt and equity for apartment acquisitions and development, CECP makes a market in several different tax credit programs including Section 47 federal historic tax credits, state historic tax credits, and selected state affordable housing tax credits. Cohen-Esrey has placed more than $700 million in tax credits for its own developments as well as for those of third-party developers.