CHICAGO--(BUSINESS WIRE)--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 orose@cressetpartners.com.
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.
