Cresset Capital Management and Diversified Real Estate Capital have partnered to launch an investment fund for Opportunity Zones.
“With more than 8,700 Opportunity Zones across all 50 states, Washington D.C., and Puerto Rico, the opportunity to invest in the path of progress was compelling to us,” Founder of Levy Family Partners and Co-Founder of Diversified Real Estate Capital Larry Levy said in a statement.
“We expect the Fund’s investments to help create significant impact and opportunity in many communities,” Levy added.
Cresset hired Matt Reilein to lead the fund’s community development initiative who was managing director and head of impact investing at O’Brien-Staley Partners as well as a managing director of community development banking at J.P. Morgan.
“Determining the path of growth across thousands of QOZs requires significant insights at the local level,” Cresset Partners Managing Partner, Real Estate, Mark Stern said in a statement.
“We are thrilled to partner with Matt, who has been a leader in the community development finance industry, spending 15 years forming critical relationships in target communities and building teams to deliver market-driven capital to low-income communities,” Stern added.
The Cresset-Diversified fund will be used for real estate development and redevelopment in Opportunity Zones across the nation.
Cresset and Diversified’s move to launch an Opportunity Zone fund is emblematic of a groundswell in investor activity surrounding the prospect of Opportunity Zones. Chasing significant tax breaks, investors could raise as much as $30 billion for Opportunity Zone investments in the next few years.
“A confluence of factors makes this an outstanding time to invest in QOZs,” Cresset Co-Founder and Co-Chairman Avy Stein said in a statement.
“Through the combined experience of our team, we have the depth, agility and insight to execute a broad range of real estate and private equity investment strategies.”
