HOUSTON, TX - Cresset Real Estate Partners announced a joint venture with Fidelis Residential Partners, a division of Fidelis, to develop a nine-building, 252-unit multifamily community in Willis, Texas, which is in the greater Houston area. The project, named Fidelis Willis, is the latest development funded by Cresset's third Qualified Opportunity Zone (QOZ) fund, Cresset Diversified QOZ Fund III ("Fund III").
The Fund provides private investment capital in some of the fastest-growing economies across the country with the goal of maximizing long-term capital gains for investors. Its predecessor, Cresset Diversified Qualified Opportunity Zone Fund II closed with more than $650 million in equity commitments.
The Fidelis Willis development is part of a larger community known as Moran Ranch, located along the I-45 corridor and within driving distance of major employment centers in north Houston such as The Woodlands. It is also within a recently completed HEB-anchored power center, developed in partnership between Fidelis and CALSTRS.
The 252 units will be situated within nine, three-story apartment buildings, featuring 120 one-bedroom units, 114 two-bedroom units and 18 three-bedroom units, with nearly 250,000 square feet of rentable space. The project is shovel ready and expected to break ground in late 2024, with construction to be completed by Q3 of 2026.
In addition to state-of-the-art apartment design, Fidelis Willis' amenities will include a 24-hour fitness center, clubhouse, pool, dog park, game room and more.
"The Houston market continues to experience strong population growth as well as attract a diverse set of top tier employers", said Jason Ross, Managing Director at Cresset Real Estate Partners. "In the post-pandemic world that we live in, where remote and hybrid work is more common, we have seen compelling investment opportunities within the greater Houston MSA, such as Fidelis Willis, as more and more people look towards the suburbs and prioritize cost of living and quality of life. We are excited to partner with Fidelis and include the Willis project as a strong portfolio investment in a viable and high growth community."
To date, Fidelis Residential Partners, based in Houston, has developed four communities and sold two, totaling 604 units in the Houston area to date. The Fidelis Willis property expands the firm's footprint in the area.
"The growth the north side of Houston is experiencing is happening even faster than we anticipated. This project will provide a much needed housing component for that growth and is a great addition to the HEB anchored retail development Fidelis is currently constructing. We are excited to partner with Cresset on this project and believe this location is perfect for our long term hold strategy," said Ford Allen, Vice President at Fidelis Residential.
Since its launch in March 2018, the Cresset Real Estate Partners' QOZ program has invested over $1.2 billion of equity in projects totaling more than 5.2 million square feet and $3 billion of total gross market value. Cresset's QOZ Funds are designed to provide access to investments in institutional, urban core real estate opportunities in high-growth markets.
OHT Partners, a general contractor out of Austin, Texas, has been engaged for the development of Fidelis Willis. With significant ties to the Houston region, OHT Partners has been contracted by Fidelis for two of their most recent multifamily developments in Houston.