The Cresset-Diversified QOZ Fund has formed a joint venture with Hines to develop The Preston, a new residential building in downtown Houston, US.
Hines’ thirtieth downtown Houston project, The Preston will be an AA+ residential building with 373 apartments and 6,804ft² of street-level retail.
All units will feature 10ft ceilings, engineered wood flooring and Italian wood cabinetry.
The Preston will also include a 24-hour concierge and valet, modern fitness centre, skydeck amenity, as well as a 23,500ft² tenth floor amenity level with resort-style pool, covered terrace, gas BBQ grills and lounge seating.
The project is located at the southwest corner of Preston and Milam, diagonally across the street from Hines’ future global headquarters, a one million ft² office tower designed by architect Pelli Clark Pelli.
The location also enjoys a Walkscore of 97 at the convergence of Houston’s Downtown Theatre District, Historic District, and Central Business District.
Cresset co-founder Avy Stein said: “The Preston is the first of many great opportunities the Cresset-Diversified QOZ Fund is pursuing. It represents a top-quality real estate property in one of the fastest growing urban areas in the United States with a leading developer in Hines.
“Adding in the tax benefits of the Qualified Opportunity Zone (QOZ), we became even more excited about this property. We believe it is an excellent first investment for the Fund.”
Qualified Opportunity Zones are land tracts designated by the US Treasury Department and Internal Revenue Service to be economically depressed or underserved.
To encourage private investment in these communities, the QOZ legislation creates sizeable tax breaks for investors who make qualified long-term investments that can promote economic growth in these zones.
The Preston is the tenth collaboration nationally between Diversified Real Estate Capital and Hines.
Diversified Real Estate Capital’s Larry Levy said: “We have a long-term relationship with Hines and look forward to pursuing many more QOZ opportunities together.
“Partnering with Hines on The Preston is a great example of our Fund investment model: working with top-rated developers in the United States on high quality projects in prime locations in major markets.”
Image: The Preston. Photo: Courtesy of Cresset Capital Management / Business Wire.