CHICAGO--(BUSINESS WIRE)--Cresset Partners announced today the close of their first industrial-focused fund, the Cresset Real Estate Logistics Fund I (“Fund I”). In just 12 months, investors committed more than $250 million to fund the development of nine state-of-the-art warehouse facilities. Driven by ongoing supply chain disruption and the significant need for new and modernized industrial facilities in key U.S. markets, tenant demand remains strong. To meet that demand, Cresset has announced the immediate launch of its second industrial fund, Cresset Real Estate Logistics Fund II (“Fund II”), which is now open to investors.
In addition, Cresset today announced the close of their second opportunity zone fund, the $655 million Cresset-Diversified Qualified Opportunity Zone Fund II, alongside the launch of their third fund in the qualified opportunity zone (“QOZ”) space, Cresset-Diversified Qualified Opportunity Zone Fund III.
“We’re thrilled with the strong and continued interest investors have shown across our real estate portfolio,” said Michael L. Miller, co-founder and executive managing director at Cresset Real Estate Partners. “The successful closings of our logistics and opportunity zone funds, and the immediate launch of both follow-on funds, speaks to the diversified and exciting opportunities we see for core development in both sectors. Both strategies address the strong demand for investments in alternative asset classes that will help grow and protect our investors’ portfolios. Real estate can play a significant role in that allocation, especially amidst volatility in traditional equity and fixed income. We couldn’t be more excited for the opportunities that lie ahead for both programs.”
Cresset’s first logistics fund launched in April 2021 driven by dramatic growth in demand for logistics real estate. The growing e-commerce economy and COVID-19-induced global supply chain disruptions put a spotlight on the need for modernized logistic centers in key U.S. markets. Fund I’s developments span five cities, all in markets that are experiencing high population growth as well as strong regional distribution and busy port and logistics activity.
In addition to its growing presence within the logistics real estate field, Cresset is one of the country’s largest managers in the qualified opportunity zone space. The firm’s first opportunity zone fund launched in March 2018, making Cresset an early mover in the QOZ market. Cresset’s first two QOZ Funds raised over $1.1 billion in equity to develop 17 projects across the country totaling over $4 billion in construction. Cresset’s third QOZ fund is now open to investors who have recently experienced, or are planning to experience, a capital gain.
Created by the Tax Cuts and Jobs Act in 2017, Qualified Opportunity Zones offer investors the opportunity to receive substantial tax benefits in exchange for investing in designated communities across the U.S. Through investing in Qualified Opportunity Funds like Cresset’s, investors can defer and reduce their tax burden from recognized capital gains—all while helping to spur economic development and job creation in these communities. The properties funded via Cresset’s QOZ program so far have created more than 40,000 permanent and temporary jobs.
“The growth of our qualified opportunity zone program has been exceptional,” said Jeff Cherner, co-founder of Cresset Real Estate Partners. “We were early to identify the QOZ space as an area where our real estate and tax experience could work together to offer strong returns to investors, and we have been privileged to partner with top development partners in the U.S. on many of our QOZ projects. Our QOZ Fund I developments will be completed on time and on budget in 2022, and several of them will begin lease-up this year. We look forward to creating exceptional long-term and tax advantaged real estate portfolios for our investors and are thrilled to see such success in QOZ to date.”
To learn more about investing in either fund, please email invest@cressetpartners.com or visit www.cressetpartners.com.
About Cresset Partners
Cresset Partners is a private investment firm focused on providing its investors with direct access to investment opportunities in private companies, real estate, and sponsor products. We focus on building outstanding, lasting partnerships by investing permanent capital, resources, and expertise to create sustainable value. We believe that long-term investing creates better alignment and reduces risk and inefficiencies, leading to better outcomes for all shareholders. Cresset Partners has more than $2.2 billion in commitments across real estate, private equity, private credit, and venture capital. Learn more at https://cressetpartners.com.
Cresset refers to Cresset Manager, LLC and all of its subsidiaries and affiliates. Cresset Asset Management, LLC provides investment advisory, family office, and other services to individuals, families, and institutional clients. Cresset Partners, LLC provides investment advisory services strictly to investment vehicles investing in private equity, real estate and other investment opportunities. Cresset Asset Management, LLC, and Cresset Partners, LLC are SEC registered investment advisors.
