- By Chloe Sacks
- April 28, 2021
Cresset Partners and Diversified Real Estate Capital Establish Partnership
This partnership formalizes an already-successful relationship, creating a multi-asset real estate platform with deep experience and expertise.
CHICAGO – April 28, 2021 — Cresset Partners and Diversified Real Estate Capital announced today the formation of a partnership of their real estate groups, expanding Cresset’s real estate investment platform. The partnership formalizes and builds upon the existing relationship between Cresset and Diversified, which has successfully sourced, structured, capitalized, and executed on $1.6 billion in real estate projects since 2019. Together, Cresset and Diversified currently have 13 conservatively financed buildings under development nationally.
The combined entity, which is called Cresset Real Estate Partners, will target institutional-quality investment opportunities in a variety of asset types, including multifamily, office, industrial, and hospitality. It will source and execute on investments directly or work with top-tier operating partners to bring unique investments to clients.
Cresset and Diversified initially partnered in 2018, successfully launching the Cresset Diversified QOZ Fund I, a $465 million fund focused on real estate development in Qualified Opportunity Zones. Cresset Diversified QOZ Fund II launched in early 2020. Since 2018, the two firms have partnered on several successful real estate investments across multifamily, office, industrial, and hospitality developments.
Cresset Real Estate Partners will be led by Executive Managing Director Michael L. Miller, who has more than 35 years of experience in the real estate industry. Diversified Founder Larry Levy will continue to provide leadership and guidance in his role as Co-Founder, along with Cresset Co-Founders Avy Stein and Eric Becker. The Cresset Real Estate Partners team will have 20 experienced investment, acquisition, and asset management professionals, including Managing Directors Jeff Cherner and Nick Marietti, who will continue to focus on sourcing investment opportunities. Cresset Real Estate Partners will operate as a part of the broader Cresset team of 170 employees across 10 locations.
“Cresset and Diversified coming together is the natural evolution of a longstanding relationship between two like-minded firms. For Cresset to have a real estate investment capability of this magnitude is unique among wealth management firms,” Levy said. “Cresset has grown tremendously since its founding just a few years ago. I have complete confidence that together we have the talent, depth of resources and relationships, and shared vision to continue that growth trajectory.”
Diversified Real Estate Capital was founded in 2003 by Levy, Miller, and Cherner. Over the past 18 years, Diversified has invested in more than 5 million square feet of class A office space, and 3,500 residential units. The principals of Diversified each have more than 30 years of experience in the real estate industry.
Cresset Partners is the private investment arm of Cresset Capital and provides investors with direct access to investment opportunities in private companies, real estate, and sponsor products.
Levy and Becker have a relationship dating back more than 40 years. Today, Levy is an investor in Cresset and serves on the Cresset Advisory Board.
“All of us at Cresset have enormous respect and admiration for the Diversified team. By coming together, we will be positioned for even greater growth going forward,” Becker concluded.