Cresset, Diversified Establish Partnership
- Apr 29, 2021
Cresset Partners and Diversified Real Estate Capital have formed the Cresset Real Estate Partners partnership, which formalizes and expands their existing relationship. The new entity will focus on institutional-quality investment opportunities in multiple sectors including multifamily, office, industrial and hospitality. Together, the two companies have 13 conservatively financed buildings underway throughout the nation.
Executive Managing Director Michael Miller will lead Cresset Real Estate Partners. Miller, who has more than three decades of real estate experience, will be joined by Larry Levy, Diversified founder, who will serve as co-founder along with Cresset Co-Founders Avy Stein and Eric Becker. The new company’s team will have some 20 investment, acquisition and asset management professionals, including Managing Directors Jeff Cherner and Nick Marietti.
The road so far
Cresset and Diversified’s first partnered in 2018 with the launch of the $465-million Cresset Diversified QOZ Fund I, which targeted real estate development in Qualified Opportunity Zones. Cresset Diversified QOZ Fund II debuted early last year, and the two funds have invested in projects in Seattle, Portland, Denver, Houston and Nashville, Tenn., among other markets. Since 2019, the partners have sourced, capitalized and executed on $1.6 billion in real estate projects. According to Yardi Matrix data, most of the partnership’s projects are slated to come online as early as the year’s end.
In downtown Portland, the partners teamed up with The Green Cities Co. and Downtown Development Group to build Eleven West, an upcoming 214-unit mixed-use project that will include more than 100,000 square feet of office and some 8,000 square feet of retail space. The 17-story building is expected to reach completion in the fourth quarter.
In Denver, the partnership joined forces with Hines to develop Residences at RiNo, a 397-unit community located in the City Park/City Park West submarket. Expected to come online in the first quarter of 2023, the 11-story project is designed to meet LEED Gold standards. Developed with help from a $91 million Northwestern Mutual construction loan, Residences at RiNo will be the submarket’s largest community at full build-out. The community will be part of a larger master redevelopment plan that includes a boutique hotel, office space, retail and a 4,000-seat AEG Live event center.