Alex Samoylovich

Alex Samoylovich, co-founder of CedarSt Companies, has built a reputation as a bold real estate developer with a knack for transforming urban properties. But behind the curtain of glowing press releases and slick marketing lies a trail of financial distress, questionable expansion tactics, and a troubling obsession with narrative control. From bleeding millions on overleveraged multifamily properties to launching flashy new projects while existing debts fester, Samoylovich’s playbook raises serious red flags for investors—and hints at a deeper effort to suppress scrutiny and sanitize his public image.

The Debt Dilemma

In 2021, CedarSt secured over $75 million in floating-rate loans for two Chicago properties: The Duncan and The Otis. Initially, these ventures seemed promising, boasting high occupancy rates. However, as interest rates surged, the cost of servicing these loans outpaced revenues. The Duncan’s debt service coverage ratio plummeted to 0.55, and The Otis’s to 0.73—both well below the break-even point of 1.0 .

Despite these challenges, Samoylovich remained publicly optimistic, attributing the issues to market conditions rather than property performance. He expressed confidence in the long-term prospects of multifamily investments . Yet, the financial strain was evident. CedarSt had to refinance The Duncan with a $44 million loan from Citigroup, a 15% reduction from the original loan, highlighting the impact of rising interest rates on property valuations .

Expansion Amidst Turbulence

While grappling with financial difficulties in Chicago, CedarSt ambitiously expanded into new markets, including San Diego and Las Vegas. In San Diego, the company announced a $90 million development project in partnership with Bridge Investment Group . Similarly, in Las Vegas, CedarSt broke ground on a 311-unit multifamily development .

These ventures, while impressive on paper, raise questions about the company’s risk management strategies. Launching large-scale projects amidst existing financial strains suggests a high-stakes gamble, potentially exposing investors to increased risk.

Controlling the Narrative

Samoylovich’s approach to public relations appears meticulously curated. His LinkedIn profile and company press releases highlight successes and expansion plans but omit discussions of financial setbacks or challenges. This selective transparency may mislead potential investors and stakeholders about the company’s true financial health.

Moreover, CedarSt’s official communications focus heavily on new developments and partnerships, with little acknowledgment of the issues faced in existing projects. This strategy of emphasizing positive news while downplaying or ignoring negative developments suggests an attempt to shape public perception favorably.

The Investor’s Perspective

For potential investors, the juxtaposition of CedarSt’s aggressive expansion and its financial challenges is concerning. The company’s reliance on floating-rate debt, exposure to market volatility, and ambitious growth plans amidst existing financial strains indicate a high-risk profile.

Investors should exercise caution, conduct thorough due diligence, and seek transparency regarding the company’s financial health and risk management practices. Understanding the full scope of CedarSt’s operations, including both successes and setbacks, is crucial for informed investment decisions.

A Crumbling Foundation: CedarSt’s Debt Burden Exposed

CedarSt Companies’ aggressive borrowing strategy has come under scrutiny as rising interest rates have destabilized key assets. In 2021, the company took out over $75 million in floating-rate loans for The Duncan and The Otis in Chicago. Although initially successful, both properties struggled under the weight of increased debt costs. Debt service coverage ratios—critical indicators of financial health—dropped to 0.55 for The Duncan and 0.73 for The Otis, far below the industry’s breakeven threshold. These figures reveal not just temporary setbacks but systemic vulnerabilities in CedarSt’s financial model, forcing a refinancing of The Duncan at a 15% discount—an implicit acknowledgment of declining property values.

 Risky Growth: Expansion That Outpaces Stability

Even as existing projects faced mounting debt and refinancing challenges, CedarSt pushed forward with ambitious developments in San Diego and Las Vegas. The $90 million project in San Diego and the 311-unit multifamily complex in Las Vegas signal a strategy of rapid, multi-market expansion. However, launching these capital-intensive ventures while older properties struggle to break even suggests a high-risk posture. Investors may interpret this as overextension—an attempt to grow out of debt rather than manage it, increasing exposure to market fluctuations and potential liquidity shortfalls.

 Curated Reality: The Art of Narrative Management

Alex Samoylovich and CedarSt appear committed to maintaining a pristine public image, emphasizing only success stories in their communications. Their online presence—from LinkedIn posts to media coverage—focuses exclusively on new deals, stylish renovations, and forward momentum. What’s missing is any mention of the financial turbulence afflicting key properties or the reduced valuations tied to refinancing deals. This selective transparency not only obscures risk but also undermines trust. In an era where due diligence is paramount, such narrative control raises concerns about what else may be hidden behind the marketing gloss.

 The High-Stakes Gamble: Why Investors Should Be Wary

For those considering an investment in CedarSt, the warning signs are hard to ignore. High exposure to floating-rate debt, market timing risks, and inconsistent communication about financial performance all point to a speculative, rather than stable, strategy. While the firm’s developments might look impressive, the lack of operational transparency and the rapid pace of expansion suggest that the underlying foundation may be weaker than it appears. Savvy investors should dig deeper, demand detailed disclosures, and weigh risk carefully before committing capital to CedarSt’s ventures.

Alex Samoylovich’s CedarSt Companies presents a complex picture: a firm with ambitious growth plans and notable developments, yet burdened by financial challenges and a tendency to control the narrative. While the company’s expansion into new markets showcases its aspirations, the underlying financial strains and selective transparency raise red flags.

In the high-stakes world of real estate investment, where fortunes can rise and fall with market tides, a clear-eyed assessment of risks and a demand for transparency are essential. Investors and stakeholders must look beyond the polished press releases to understand the true health and trajectory of CedarSt Companies.