Hines, with investment partners Cresset Wealth Advisors and Levy Family Partners, revealed plans for The Preston in Houston, which will be funded by a qualified opportunity zone fund. Hines has formed a joint venture with the Cresset-Diversified QOZ Fund.
“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,” said Larry Levy of Diversified Real Estate Capital.
The Preston is the 10th collaboration nationally between the leaders of Diversified Real Estate Capital and Hines, and it represents Hines’ 30th downtown Houston project.
The AA+ residential building will have 373 apartments and 6,804 square feet of street-level retail. Units will feature 10-foot ceilings, engineered wood flooring and Italian wood cabinetry. In addition, the Preston will feature a 24-hour concierge and valet, state-of-the-art fitness center, skydeck amenity, and a 23,500-square-foot 10th floor amenity level with resort-style pool, covered terrace, gas BBQ grills, and lounge seating.
The project’s location at the southwest corner of Preston and Milam is diagonally across the street from Hines’ future global headquarters, a 1 million-square-foot office tower designed by architect Pelli Clark Pelli. This amenity-rich location enjoys a Walkscore of 97 at the convergence of Houston’s Downtown Theatre District, Historic District, and Central Business District.
“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,” said Avy Stein, Co-Founder of Cresset. “Adding in the tax benefits of the qualified opportunity zone, we became even more excited about this property. We believe it is an excellent first investment for the fund.”
“Over the past 10 years, downtown’s nucleus has shifted to the north, and Hines new office and residential developments have led the way with projects including 811 Main, 609 Main at Texas and Aris Market Square,” said Kevin Batchelor, senior managing director, Hines. “We look forward to delivering our most impressive residential community to date in this new urban hub. Residents will enjoy a walkable, big-city lifestyle in a living environment that exudes luxury and style.”