Representing one of the first qualified opportunity zone (QOZ) investments in the Denver area, the Cresset-Diversified QOZ Fund and Hines have plans to build North Wynkoop, a 10-story, for-rent multifamily community.
“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.”
It will feature 392 luxury, urban-style residences on the northern edge of Denver’s River North neighborhood (RiNo). RiNo is one of Denver’s prime cultural, dining and nightlife destinations and is located in close proximity to both the city’s light rail system and major thoroughfares.
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, which is 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 QOZs. Passed as part of the Tax Cuts and Jobs Act of 2017, QOZs are land tracts designated by the U.S. Treasury Department and Internal Revenue Service. To incentivize private investment in these communities, the QOZ legislation creates sizable tax breaks for investors who make qualified long-term investments that have the potential to promote economic growth in these 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.
