Cresset Partners and Diversified Real Estate Capital have partnered to form Cresset Real Estate Partners, an entity that plans to target investment opportunities in a variety of asset classes, including multifamily, office, industrial, and hospitality.
The partnership “formalizes” the existing relationship between Cresset and Diversified, which has completed $1.6 billion in real estate projects since 2019, the companies said. Cresset/Diversified currently have 13 buildings under development nationally.
The two firms initially partnered in 2018 to launch the Cresset Diversified QOZ Fund, a $465 million fund focused on real estate development in qualified opportunity zones. Its second fund, Cresset Diversified QOZ Fund II, launched in early 2020.
Cresset Real Estate Partners will be led by executive managing director Michael Miller, who has more than 35 years of experience in the real estate industry. Diversified founder Larry Levy will continue to provide leadership and guidance in his role as co-founder, along with Cresset co-founders Avy Stein and Eric Becker.
The team will have 20 investment, acquisition, and asset management professionals, including managing directors Jeff Cherner and Nick Marietti, who will continue to focus on sourcing investment opportunities. Cresset Real Estate Partners will operate as a part of the broader Cresset team of 170 employees across 10 locations.
“Cresset and Diversified coming together is the natural evolution of a longstanding relationship between two like-minded firms,” said Levy. “For Cresset to have a real estate investment capability of this magnitude is unique among wealth management firms. Cresset has grown tremendously since its founding just a few years ago. I have complete confidence that together we have the talent, depth of resources and relationships, and shared vision to continue that growth trajectory.”
Diversified Real Estate Capital was founded in 2003 by Levy, Miller, and Cherner. Over the past 18 years, Diversified has invested in more than 5 million square feet of class A office space, and 3,500 residential units. The principals each have more than 30 years of experience in the real estate industry.
Cresset Partners is the private investment arm of Cresset Capital and provides investors with access to investment opportunities in private companies, real estate, and sponsor products.