Cresset Partners Closes Industrial, OZ Funds And Immediately Launches 2 More Of The Same
Cresset Partners has had so much success with its industrial and opportunity zone funds, it is immediately launching two new ones.
“The successful closings of our logistics and opportunity zone funds, and the immediate launch of both follow-on funds, speaks to the diversified and exciting opportunities we see for core development in both sectors,” Cresset Real Estate Partners Executive Managing Director and co-founder Michael L. Miller said in a statement. “Both strategies address the strong demand for investments in alternative asset classes that will help grow and protect our investors’ portfolios.”
The industrial sector’s strength, seen in low vacancy rates and new space leasing up quickly, has attracted many newcomers to the space, Bisnow has reported. Opportunity zone fund investment was up 39% in the last half of 2021, compared to the first half of that year, with Novogradac tracking $6.9B in these areas.
The private investment firm launched its very first logistics fund in April 2021. That fund just closed and raised $250M from investors for the development of nine warehouses.
The firm said the high tenant demand it has seen, driven by supply chain issues and the need for up-to-date warehouses across the country, prompted it to launch a second fund, which is open now.
Cresset also closed an opportunity zone fund and launched a new one, its third, the company announced. Cresset’s first two QOZ funds raised more than $1.1B for the development of 17 projects nationwide that amounted to over $4B in construction. The OZ program allows capital gains taxes to be deferred until 2026, when the project ends, though there is a chance that end date could be pushed back.
Cresset said the developments funded by its first OZ fund were slated to be completed on time and on budget this year.
Cresset Asset Management, another Cresset arm, announced Wednesday that it plans to merge with Meristem Family Wealth, a $5.4B wealth advisory firm, to create a multifamily office with more than $27B in assets under management, Wealth Management reported. The deal is expected to close next month.
Last September, Cresset integrated $4.7B Berman Capital Advisors, a multifamily office based in Atlanta and Austin.