Fidelis and Cresset Start QOZ Multifamily Project

WILLIS, Texas – (Realty News Report) – Cresset Real Estate Partners, in a joint venture with Fidelis Residential Partners, a division of Fidelis, is developing a nine-building, 252-unit multifamily community in Willis, located about 50 miles north of downtown Houston.

The project, named Fidelis Willis, is the latest development funded by Cresset’s third Qualified Opportunity Zone (QOZ) fund, Cresset Diversified QOZ 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.

Fidelis Willis is expected to break ground in late 2024, with construction to be completed by the third quarter of 2026.

“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, a Chicago-based firm. A few years ago, Cresset partnered with Hines to develop the 46-story Brava apartments in an Opportunity Zone project in downtown Houston built on the site of the parking garage for the former Houston Chronicle.

To date, Fidelis Residential Partners, based in Houston, has developed four apartment 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.

OHT Partners, a general contractor based in Austin, will construct the Fidelis Willis apartments.

Headquartered in Bellaire, Texas, Fidelis was founded in 2003 by Alan Hassenflu. Fidelis was focused on retail for many years, but it has broadened its scope to include on healthcare, multifamily, and industrial developments. Fidelis has a 24 million SF portfolio with 95 properties across 14 states, with the largest concentrations in the metropolitan Houston and DFW markets.

Under the Opportunity Zone regulations, property owners that make substantial improvements to the property may take advantage of tax break son capital gain tax. If an Opportunity Zone investor holds the property for 10 years, the investment will be excluded from paying any capital gains tax. Even a five-year hold generates some tax benefits.

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