Cresset-Diversified QOZ

Cresset-Diversified QOZ is a leader in the Opportunity Zone market and has been an early mover in the industry - being one of the first to launch a QOZ fund in December 2018. In Q1 2020, we successfully raised $465 million to close our first fund, and launched the Cresset-Diversified QOZ Fund II.

Contact Us

Contact us to learn more about our Fund


Cresset Partners, led by Eric Becker and Avy Stein, and Diversified Real Estate Capital, led by Larry Levy, partnered to create the Cresset-Diversified QOZ Fund. The Fund is managed by an experienced team of investors along with legal, tax and accounting experts.

  • Qualified Opportunity Zones

    The Tax Cuts and Jobs Act of 2017 created QOZs to provide potentially significant tax benefits to investors who re-invest capital gains into long-term investments into communities designated for economic development. This solution is useful for investors who have substantial capital gains and a desire to realize them in a tax-efficient manner.

  • The Cresset-Diversified Solution

    Cresset Partners, led by Eric Becker and Avy Stein, and Diversified Real Estate Capital, led by Larry Levy, partnered to create the Cresset-Diversified QOZ Fund. The Fund is managed by an experienced team of investors along with legal, tax and accounting experts. Cresset-Diversified QOZ closed their first fund in Q1 2020 after successfully raising $465 million. The team subsequently opened up Fund II which is now open for investments.

    Fund I closed on its investment in Houston in April 2019 and started construction shortly thereafter, making the Preston one of the largest QOZ investments in the U.S. to start construction. Fund I has six other investments under construction and under contract: Eleven West (Portland, OR), North Wynkoop (Denver, CO), The Mercantile (Omaha, NE), The Finery (Nashville TN), Cormac (Charleston, SC), and Ripley II (Silver Spring, MD).

  • Target Investments

    • Multi-family
    • Office
    • Student Housing
    • Industrial / Distribution
    • Parking Facilities
    • Hospitality
    • Retail
    • Storage
  • Major Benefit to After-Tax Returns

    After-tax gains on a QOZ Investment can be more than double those of a similar investment without the QOZ benefits. The table below illustrates an investor’s potential after-tax returns in a QOZ investment compared to the investment of capital gains in a traditional investment both appreciating at 10%.

    Traditional Investment QOZ Investment
    Invested Capital Gain $1,000,000 $1,000,000
    Less: Capital Gain Tax Investment (23.8%) ($238,000) 0
    After-Tax Investment $762,000 $1,000,000
    Year 10 Value (assumes 10% annual investment appreciation) $1,976,432 $2,593,742
    Less: Year 10 Capital Gains Tax (23.8%) ($289,035) 0
    Year 10 After-Tax Value $1,687,397 $2,593,742
    Less: Cap Gains Taxes on Invested Gains Due on 12.31.26* 0 ($214,200)
    Total Year 10 After-Tax Value $1,687,397 $2,379,542
    Total Year 10 After-Tax Net Gain** $687,397 $1,379,542
    • * Assumes investment is held for 4 years and a 10% step-up in basis is applied to original capital gain that was invested
    • ** Assumes 10-year holding periods, annual rate of investment appreciation of 10%, and a long-term capital gains tax rate of 23.8%.
    • Note: The amounts shown are not net of fees and carry in either the traditional investment or the QOZ investment. This is to illustrate the tax benefits of QOZ investments prior to any fee structures.
  • Investment Timeline

    By investing in an opportunity zone, investors are able to defer taxes on capital gains, reduce taxes by holding the investment, and eliminate taxes if held for 10 years, as illustrated below.

    1. 0

      Year 0

      Capital gains invested, deferring payment of capital gains tax.

    2. 1
    3. 2
    4. 3
    5. 4
    6. 5

      Year 51

      Tax on original capital reduced through a 10% step-up in basis.

    7. 6
    8. 7

      Year 72

      12/31/2026: Original capital gains tax due unless the asset has already been sold.

    9. 8
    10. 9
    11. 10

      Year 10

      When sold, investor basis stepped up to FMV, eliminating tax on QOZ capital gain.

    • 1 This reduction is effectuated by increasing the basis of the Investor’s interest in the Fund by an additional 5% of the capital gain that the Investor elected to roll over (invested in the Fund), thus reducing the net capital gain by a total of 15%, and is only available with respect to investments made prior to December 31, 2019. See the prior footnote for further description of the amount of capital gain that is recognized and final income tax liability when the deferral period ends.
    • 2 In which case, the tax is due when the sale occurred.

Fund I Investments

The Cresset-Diversified QOZ Fund partners with top developers to build institutional quality core real estate assets in high growth primary markets across the United States. Our investments are structured conservatively with strategic loan-to-cost leverage. Below is detailed information on our Fund I investments.

Investment Market Developer Multi-Family Office
Fund I: Brava Houston, TX Hines
Fund I: Residences at RiNo Denver, CO Hines
Fund I: Eleven West Portland, OR DDG & Gerding Edlen
Fund I: The Finery Nashville, TN Hines
Fund I: Ripley II Silver Spring, MD Washington Property Co.
Fund I: The Mercantile Omaha, NE Hines
Fund I: Cormac Charleston, SC Lennar
Invest Now

Invest Now

Learn about the benefits of QOZ funds and how to invest. Please fill out the information below to be contacted by a member of our team.

Fund Team

Photo of Avy Stein

Avy Stein


Photo of Eric Becker

Eric Becker


Photo of Larry Levy

Larry Levy


Photo of Bill Rudnick

Bill Rudnick

Fund Counsel

Photo of Jeff Cherner

Jeff Cherner

Co-Founder, Executive Vice President

Photo of Michael Miller

Michael Miller

Co-Founder, Executive Vice President

Photo of Nick Parrish

Nick Parrish

Managing Director

Photo of Christopher Boehm

Christopher Boehm

Managing Partner

Photo of Nick Marietti

Nick Marietti

Managing Director

Photo of Matt Teitelbaum

Matt Teitelbaum


Photo of David Mills

David Mills

Chief Financial Officer

Photo of Dan Terlep

Dan Terlep

Vice President, Operations

Photo of Vimala Snow

Vimala Snow

Managing Director

Photo of Carter Eckerline

Carter Eckerline


Photo of Will Hoesley

Will Hoesley



Mike Jackson

Vice President


Chip Wille

Sr. Director


To learn more about the Cresset-Diversified QOZ Fund or to share a Qualified Opportunity Zone investment opportunity, contact us below.