CHICAGO–(BUSINESS WIRE)–Cresset Partners and Diversified Real Estate Capital announced today the loan closing and construction start for the Cresset Diversified QOZ Fund (“Fund I”) investment in the Residences at RiNo multifamily development in Denver, Colorado.
This investment marks the fourth joint venture between Cresset Diversified and Hines, representing over $750 million in opportunity zone developments around the country. Led by Cresset Diversified’s experienced team of real estate, private equity, tax, and legal professionals, Fund I invests in institutional-quality, core real estate development projects and focuses specifically on well-positioned urban neighborhoods in high-growth markets like Denver.
Residences at RiNo is a build-to-core multifamily real estate project located in North Wynkoop, a premier master-planned district and is the only available multifamily development site within the master plan which is located in a qualified opportunity zone, just north of Downtown Denver. The property will be an 11-story, mid-rise residential building with 397 units, ranging between 542 and 1,715 square feet. The North Wynkoop master-planned development is positioned in the River North (RiNo) Art District, which boasts a vibrant art scene, restaurants, and both startups and established businesses. It is also a district set for continued growth. With 1.1 million square footage of existing office space and 2.9 million square feet of future office space within one mile of the site, the district is expected to bring 20,000 future jobs.
“The Residences at RiNo multifamily project is the sixth development to break ground in the Cresset Diversified QOZ Fund, which is among the largest to deploy capital into Opportunity Zones, and our partnership with Hines has been instrumental in giving our investors the chance to invest in top QOZs at institutional grade quality,” said Avy Stein, Cresset Founder and Co-Chairman. “This project’s positioning in the River North neighborhood of Denver, which is set to see an influx of growth, provides a one-of-a kind exclusive opportunity for our investors.”
Cresset and Diversified Real Estate Capital announced the close of Fund I in March 2020 after raising the $465 million in capital needed for the portfolio and the seven underlying projects and launched their follow-on fund, the Cresset-Diversified Qualified Opportunity Zone Fund II (“Fund II”), with an investment mandate equivalent to Fund I.
About the Cresset-Diversified QOZ Fund
Cresset Partners, led by private equity entrepreneurs Avy Stein and Eric Becker, united with Diversified Real Estate Capital, led by Larry Levy, to create a joint venture partnership focused on core real estate development investments in Qualified Opportunity Zones. The Cresset Diversified partnership launched its first fund, Cresset Diversified QOZ Fund I, in December 2018 and raised $465 million to invest in seven institutional-quality projects located in top-tier markets around the country. Cresset Diversified recently announced the launch of their second fund, Cresset Diversified QOZ Fund II, which will similarly target opportunity zone projects with the potential for substantial risk-adjusted, tax-advantaged returns. Fund II will invest in core urban markets across the country with a focus on multifamily, office, industrial and retail investments located 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.