Cresset-Diversified QOZ Fund Enters into Joint Venture with Hines for the Fund’s First Qualified Opportunity Zone Investment

CHICAGO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/finance?src=hash” target=”_blank”gt;#financelt;/agt;–The Cresset-Diversified QOZ Fund has announced the formation of a joint
venture with Hines to develop The Preston, a new residential building in
downtown Houston.


The Preston, which represents Hines’ thirtieth downtown Houston project,
will be a AA+ residential building with 373 apartments and 6,804 square
feet of street-level retail. Units will feature ten-foot ceilings,
engineered wood flooring, and Italian wood cabinetry. In addition, the
Preston will feature a 24-hour concierge and valet, state-of-the-art
fitness center, skydeck amenity, and a 23,500-square-foot tenth floor
amenity level with resort-style pool, covered terrace, gas BBQ grills,
and lounge seating.

The project’s location at the southwest corner of Preston and Milam is
diagonally across the street from Hines’ future global headquarters, a 1
million-square-foot office tower designed by world renowned architect
Pelli Clark Pelli. This amenity rich location enjoys a Walkscore of 97
at the convergence of Houston’s Downtown Theatre District, Historic
District, and Central Business District.

“The Preston is the first of many great opportunities the
Cresset-Diversified QOZ Fund is pursuing. It represents a top-quality
real estate property in one of the fastest growing urban areas in the
United States with a leading developer in Hines,” said Avy Stein,
Co-Founder of Cresset. “Adding in the tax benefits of the Qualified
Opportunity Zone (QOZ), we became even more excited about this property.
We believe it is an excellent first investment for the Fund.”

Passed as part of the Tax Cuts and Jobs Act of 2017, Qualified
Opportunity Zones are land tracts designated by the U.S. Treasury
Department and Internal Revenue Service to be economically depressed or
underserved. To incentivize private investment in these communities, the
QOZ legislation creates sizeable tax breaks for investors who make
qualified long-term investments that have the potential to promote
economic growth in these zones.

The Preston is the tenth collaboration nationally between the leaders of
Diversified Real Estate Capital and Hines.

“We have a long-term relationship with Hines and look forward to
pursuing many more QOZ opportunities together,” said Larry Levy of
Diversified Real Estate Capital. “Partnering with Hines on The Preston
is a great example of our Fund investment model: working with top-rated
developers in the United States on high quality projects in prime
locations in major markets.”

With an experienced investment team, the Cresset-Diversified QOZ Fund
seeks to generate attractive returns enhanced by potential tax benefits,
including deferral and reduction. The Fund’s investment teams are led by
a group of seasoned real estate and private equity professionals
supported by community impact, legal, tax, and accounting experts.

“QOZs represent a powerful intersection of public policy and investment
opportunity, and we are excited for the potential of creating
significant impact for the Houston community,” added Cresset Co-Founder
Eric Becker. “Together with Hines, we have built an experienced,
multi-disciplinary team to source and execute great opportunities like
The Preston, which are in the path of progress.”

For press inquiries or to share potential QOZ investment opportunities,
contact Oliver Rose at [email protected].

About Cresset-Diversified QOZ Fund

Cresset Partners and Diversified Real Estate Capital launched the
Cresset-Diversified QOZ Fund in the Fall of 2018, which invests in
Qualified Opportunity Zones across the United States with the goal of
creating positive and measurable social impact and the potential for
substantial risk-adjusted, tax-advantaged returns. The
Cresset-Diversified QOZ Fund is raising $500 million in capital
commitments. Executive team members, Eric Becker, Avy Stein, Larry Levy,
Jeffrey Cherner and Michael Miller will leverage their experience to
identify prime QOZ opportunities and act quickly to creatively structure
transactions. The Fund seeks to create institutional quality assets
focused on office, retail, multi-family, industrial, residential and
mixed-use properties in QOZs.*

*The contents hereof are not to be used as the basis for making any
investment decision and are not a recommendation of, or solicitation
for, the subscription, purchase or sale of any security, including the
fund mentioned herein.

Contacts

Oliver Rose
[email protected]

error: Content is protected !!