Cresset-Diversified QOZ Fund, an opportunity zone fund launched by Cresset Partners and Diversified Real Estate Capital, and international real estate giant Hines, announced plans to build North Wynkoop, a 10-story multifamily rental community with 392 residences on the northern edge of Denver’s River North neighborhood.
North Wynkoop is part of a larger master redevelopment plan that will include a boutique hotel, office building, retail and a 4,000-seat AEG Live event center, which will open in August.
Construction on North Wynkoop is expected to begin in the first quarter of 2020 and represents the second joint venture between the Cresset-Diversified QOZ Fund and Hines. Earlier this year they announced the fund’s first development, The Preston, a 46-story luxury for-rent tower in downtown Houston that is now under construction.
The Cresset-Diversified QOZ Fund is a $500 million fund focused on investing in qualified opportunity zones. The opportunity zone program was created by the 2017 Tax Cuts and Jobs Act to offer investors capital gains tax relief for new investments in certain economically distressed areas nationwide that are designated as opportunity zones.
In addition to North Wynkoop and The Preston, the Cresset-Diversified QOZ Fund currently has properties under development in Portland, Nashville and several other markets.
“North Wynkoop is the second of many great opportunities the Cresset-Diversified QOZ Fund is pursuing. It represents a top-quality real estate property in Denver, 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 QOZ, we became even more excited about this property. We believe it is an excellent second investment for the fund.”
Cresset Partners and Diversified Real Estate Capital launched the Cresset-Diversified QOZ Fund in the Fall of 2018 to invest in qualified opportunity zones across the United States. The fund plans to raise $500 million in equity and will focus on office, retail, multifamily, industrial, residential and mixed-use properties.