Urban Catalyst Opportunity Zone Fund II continues to attract capital for investment in Silicon Valley
SAN JOSE, Calif.–Urban Catalyst, a Silicon Valley premier Opportunity Zone Fund, has continued its successful fundraising with more than $250 million assets under management, the company announced today.
Urban Catalyst successfully closed its first OZ Fund in December 2020 with $131 million. Urban Catalyst Opportunity Zone Fund II is currently open to investors. Both funds are investing in downtown San Jose with projects that include multifamily (Icon/Echo), student housing (The Mark) senior living (Gifford Place), and offices and entertainment venues (Paseo).
“Our funds offer the opportunity to be a part of great projects in one of the strongest real estate markets in the country,” said Erik Hayden, Founder of Urban Catalyst. “This is something that has proven to be very attractive to investors.”
Investing in downtown San Jose
Downtown San Jose is in the midst of a major transformation, with companies like Google, Apple, and Adobe collectively investing billions of dollars to expand there. Public infrastructure is being built out as well, highlighted by the ongoing development of the Diridon train station, which will ultimately connect to BART and bring high speed rail access to the city.
The San Jose real estate market has continued to show strength across property types. Multifamily occupancy rates stood at 95.4% in April, according to Multihousing News, while office vacancy rates were recently in the 9-10% range, well below that of neighboring San Francisco and that of the U.S. generally.
“San Jose has always been a terrific place to live and is increasingly a great place to work, too, as more and more companies and people are discovering,” said Morgan Mackles, EVP of Investor Relations at Urban Catalyst. “That makes it a great place to build and invest as well.”
An investment in a Qualified Opportunity Zone Fund like Urban Catalyst allows individuals to defer paying capital gains taxes on the sale of certain assets, including stock, a business, or real estate.
A recognized leader in Opportunity Zone (OZ) fundraising, Urban Catalyst ranked in the top 5% of all OZ funds tracked by Novogradac. Just 42 of the 1,500 Opportunity Zones tracked raised more than $150 million.
About Urban Catalyst
Urban Catalyst is a leading real estate equity fund manager and development company focused on ground-up projects in downtown San Jose, California. The company ranked among the top 5% of all tracked Opportunity Zone (OZ) funds raised and was named by Forbes to the prestigious OZ Top 20 list as one of the top OZ Funds in the country.
Urban Catalyst’s home market, San Jose, was recently named the #1 city in the U.S. for attracting innovation-oriented industries by the real estate services firm JLL and has been recognized as the #1 region in the country poised for post-pandemic recovery by Bloomberg.